Never miss an update

Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea




Item specifics

Condition:
New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Brand: Fly London
Exact Heel Height: 1.5" Style: Snow, Winter Boots
Heel Type: Block Main Colour: Black
Sole: Rubber
Never miss an update

Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea - blurrypron.com

    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea
    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea
    Womens Irregular Choice Mini Mcnutty Flat Squirrel Velvet Ballerinas US 5.5-11New Vivobarefoot Jing Jing Womens Leather Brown Minimalist Ballet FlatWomen Slip On Boat Shoes Leather Loafer Casual Mary Jane Flat Wedge New Comfort , Unisex Adults Dr Martens Willis Stud Originals Core Leather Creeper Shoe US 5-14 , WOMEN embroidered blue shoes oxford black natural suede in different sizes NEW , Pionted Leather Suede Stitching Bow-Tie Shoes Luxury Flats Classic Loafers Shoes , NEW AXIGN MEDICAL FOOTWEAR WOMENS ALEX DIABETIC & ARTHRITIS RELIEF SHOES , Womens Dr Martens 8065 PW Virgina Black Leather Mary Jane Shoes Shu Size , Womens Dr Martens Polley Work Retro Black Smooth Buckle Leather Shoes US 5-11Womens Irregular Choice Yes You Peli Can Orange Ballerina Flat Shoes Shu SizeWomens Irregular Choice Mini Mcnutty Squirrel Velvet Flat BallerinasHAFLINGER Women's Clogs Genuine Natural Cork Felt Slipper Lamm Lemmi 738008WOMEN embroidered shoes oxford black natural suede in different sizes NEW , NEW CABELLO COMFORT EG1520 WOMENS FLAT LEATHER COMFORT EUROPEAN SHOES , Womens G.H Bass Weejuns Esther Kiltie Slip On Smart Work Loafers Shoes , Women Slip On Boat Shoes Leather Loafer Slippers Mary Jane Flat Gladiator New , Womens Dr Martens Askins Cherry Red Temperley Sports Mary Jane Shoes Shu Size , New Vivobarefoot Jing Jing Womens Leather Black/Hide Minimalist Ballet FlatCole Haan Women's Pinch Weekender Penny Loafer Pink/Navy Ink 7.5 M US , NEW AXIGN MEDICAL FOOTWEAR WOMENS HAWTHORN DIABETIC ARTHRITIS RELIEF SHOES , Womens Vagabond Iza Leather Work Black Fashion Casual Block Heel Shoes US 5.5-10Easy Spirit Women's Aubree2 Flat Wine/Wine Fabric 6 M US , FitFlop Women's F-Sporty Leather Ballerinas Ballet Flat Stone 7.5 M USSperry Top-Sider Women's Angelfish Oat Slip-on Loafer Metallic Linen 9 M USNEW COLE HAAN WOMENS WOMEN'S PINCH GRAND PENNY LOAFER - GOLD METALLIC , Womens Irregular Choice Yes You Peli Can Turquoise Flat Ballerinas Shoes Shu SizAnne Klein Women's Noris Leather Moccasin Dark Gold 7.5 M USIvanka Trump Women's Chic4 Ballet Flat Black Suede Embossed Snakeskin PrintNEW FLEX & GO LEAH WOMENS SOFT COMFORTABLE LEATHER SHOES MADE IN PORTUGAL
    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea - blurrypron.com>Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea - blurrypron.com
    Cougar Creek Women's Boot Navy/Tan 7 M USWomen's FRYE 14L Marbled Brown Leather Pull On Campus Moto Boots Sz 7 M 77050 , FRYE Women's Joan Campus Mule Black Smooth Antique Pull Up 6.5 M USNIKE SB BLAZER ZOOM LOW DUST BLACK SKATEBOARD FREE POSTAGE AUSTRALIAN SELLER , Catwalk style brown zebra XTI faux nubuck leather ANKLE SHOE BOOTS bnib eu40Easy Spirit Senevalie3" Tall Boots, Black, Size 7.0 US / 5 UK , Nina Armando Candice – Navy Mid Low HeelsAuthentic Suade Black Versace Shoes/flats medusa Size 37 , AB946 BOTTICELLI shoes black bronze leather men elegantDansko Women's Patent Leather Cheetah Print Clogs Sz US 10.5-11 / , Sperry Top-Sider Womens Sayel Clew Floral STS99255 SIZE 5.5 M1E10 Cole Haan Nude Slip On Pumps Dressy Almond Toe Elegant Women Shoe Sz 8.5BDolce Vita Julie Wedge Melon Suede Wanton Platform Sandal Crisscross Strap Pinkswedish hasbeens 83003 Womens Braided High Heeled Sandal /- Choose SZ/Color. , Nike Airforce 2 High White Freshwater Black Men’s 10.5[CG2993] Mens Adidas PureBOOST DPR LTD - Multi-Color Rainbow Running Sneaker , ASICS GEL KAYANO TRAINER KNIT SZ 9 CARBON MULTI COLOR BLACK HN7M4 9790Adidas Vengeful Mens Running Trainers Sneakers AQ6083NIKE AIR FORCE 1 FOAMPOSITE CUP "LIGHT CARBON" AH6771-002 MENS SIZE 8 m , Nike Epic React Flyknit - AQ0067 004 , Nike Air Max 270 Habanero Mens AH8050-601 Challenge Red Running Shoes Size 7.5 , Adidas Court Deck Vulc Mid Olive size 11.5 , COLE HAAN Grand OS Black Leather Cap Toe Ankle Chelsea Boots Men's 12 M , Kenneth Cole New York Premiere Show Low Sneaker, Leather Upper, White, 8.5, NewMARK NASON ROCK NEVER DIES STUDDED DRAGON ITALIAN LEATHER SHOES MEN'S SIZE 12 , Womens Salvatore Ferragamo Shoes Sneakers Size 8 B model SJ 461 free shippingNike Air Max 90 Women's Binary Blue/Binary Blue/Muslin/Sail 81105401 , Sporto® Natasha; Waterproof Suede and Leather Duck Boot, Black 8.5M , CHLOÉ QUILTED LIZARD-EFFECT AND LEATHER SNEAKERS TRAINERS US 11 BNWT , New Fashion Women High Heel Size Zip Over The Knee Boots Ladies Winter Shoes ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea - blurrypron.com

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea - blurrypron.com

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.

    Conclusion

    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?

     

    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    Womens Fly London Solv Solv 29988 Leather Knee mogochinese-29995 High Riding Winter Snow Wedge Boots 0422fea
    Boots
    >
    ;