Never miss an update

Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14




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
Style: Athletic Sneakers
Color: Multi-Color Width: Medium (D, M)
Brand: Nike US Shoe Size (Men's): 11
Never miss an update

Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14 - blurrypron.com

    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14
    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14
    Fendi Sneaker Vnds With Box And Receipt Lot Like Lebron Retro Kobe Kd Foam2017 NIKE X OFF WHITE PRESTO - SIGNED BY VIRGIL ABLOH - / US 11- VERY RARENike Air Max 97 SP Country Camo Pack Italy Flag Men's Size 10 Sneakers Shoes DS , Nike Lebron Zoom 20 5 5 Navy White Collector Item Rookie 1 2 3 4 6 7 8 9 11 12Pharrell Williams Adidas Human Race NMD 'Equality' Holi Black AC7033 Authentic , Gentlemen/Ladies jordans and other shoes (lot) wholesale New design unique , Nike Air Jordan 1 DMP Celtic Size 9 RARE Defining Moments Pack , ADIDAS X OVERKILL EQT SUPPORT FUTURE BLACK BY2913 BRAND NEW IN BOX , OFF WHITE NIKE AIR MAX 97 MENTA WOLF GREY UK SIZE 12 US 132018 Nike Air Max 1/97 VF SW Sean Wotherspoon AJ4219-400 97/1 Size 8.5 , 1985 Original Nike Air Jordan I 1 Red Black Bred OG sz 9 , VANS x TAKASHI MURAKAMI BLUE (FLOWER) Sz US UK6 7 8 9 10 11 Slip On Deck 2015 , AIR JORDAN 4 TRAVIS SCOTT 8-14 "CACTUS JACK" BLUE RED BLACK 308497-406. ⭐️⭐️⭐️⭐⭐Mr/Ms nike hyperadapt 1.0 sz 10.100% authentic Quality products Price reduction wonderful , Nike Off-White Blazer Mid Grim Reaper Shoe Size 12Mens Christian Louboutin Louis Flat Nappa Lam Strass Swarovski euro 40 US 7 $3k2 LEBRONS , 1 FLIGHT POSITE , 1 JEREMY SCOTT , 1 ADIDAS. SZ 8.5 (PREOWNED)NIKE AIR 180 PREMIUM TZ LAF "LIVESTRONG" - SZ US 11DS OG Nike Air Jordan 10 X City Pack Sacramento Kings Size 8.5 black purple 1995 , AIR JORDAN RETRO 4 KAWS BLACK/BLACK-CLEAR- GLOW SZ 13 **DEADSTOCK** , Nike Brand New Air Force 25(B) Limited Edition Varsity Red/Black USA Mens size 9 , Nike Zoom Kobe IV 4 Xmas Christmas ID sz 11 White Yellow Purple Chaos OG Low , Nike React Element 87 Sail Light Bone US Size 10 AQ1090 100 , Brand New DS 2012 Nike Air Jordan IV 4 Retro BRED black cement grey fire red 11 , Custom Nike Air Jordan Retro 1 Shattered Blue Toe 9 Game Royal Fragment Bred Off , Adidas Yeezy Boost 700 Wave Runner B75571 Size 9 12Kobe Prelude 6 Sz11.5 Grinch Fade To Black Mamba Chaos Joker 3D , Reebok x Packer Court Victory Pump French Open Clay Men's Size 11 RareBrand New 2007 Nike Dunk Low Pro SB Gibson - Size 9.5 Deadstock ,
    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14 - blurrypron.com>Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14 - blurrypron.com
    Brand New Kork-Ease Women's Isa Dark Brown Leather Ankle boots Sz 6.5US,37EUREnzo Angiolini Eero Wide Calf Leather Riding Boot Size 6.5Brand New Tods Brown Leather Strappy Mid-Calf Gomma Boots Size 37/7 $1545.00 , Womens Ted Baker Novely Boots BLACK Boots , NIB Dolce & Gabbana Women's Sz 36 Derby Studded Brogues Boy Wingtip Oxford ShoesStuart Weitzman Black Satin Jeweled T-strap Pumps Heels 8 M , Ruby Shoo Camilla Women's Navy Shiny Patent Ankle Strap Mary Jane High Heels NewSteve Madden Diva Dress Pump - Women's Size 8M - RedTed Baker London Ninof Strappy Sandal Blue Suede Leather Size 7Linea Paolo Crissy | Women's Bow Adorned Kitten Heel Handcrafted Suede Mule New , TONY BIANCO ALASKA BLACK CHICAGO HEELS LADIES SUEDE LEATHER DRESS SHOES SIZE 6 , ISSEY MIYAKE ROBERT CLERGERIE Sandals Size US 6(K-39920) , ASICS Men's Jolt Road Running Shoe , NEW - Under Armour 1296619-002 Curry 1 Lux Low Suede Off-Court Sneaker Shoe 9 , Nike SB Stefan Janoski 333824-604 Elemental Pink Gum Brown StakeBoarding BNIBNike Air Jordan 1 Retro Low 309192-001 Black/Metallic Silver/Red Sz 13Converse Chuck Taylor HI White/Multi The Simpsons M12 , Puma Puma Star X HOH W Palm House Of Hackney White/Green 357784 01 Men'sNIKE AIR MAX 95 PREMIUM SE SZ 8.5 VACHETTA TAN SNAKE ELEMENTAL GOLD 924478 201SUPREME x VANS SID PRO FW18 PURPLE SIZE 9 DS, 100% AUTHENTIC , ADIDAS SPEZIAL "RARE" Mens 9.5 Red Suede/Royal Stripe NEW w Tags samba hamburg , Skechers Performance Men's Go Golf Pro 2 Golf Shoe2005 VANS CLASSIC CLS SLIP-ON LX MARC JACOBS WATERMELON WHITE GREEN PINK NEW 10Tods Moc Toe Penny Loafers 8.5 (9.5 US) Medium Brown Leather Venetian ShoesMen Pointy Toe Fashion 17 Pull on Loafers Cuban Leather Breathable Dress Shoes , Nike Women’s Air Max Thea Pinnacle Running Shoes Sz 6 NEW 839611-003 , Demonia Women's Muerto 2028 Black Polyurethane/Pewter Chromeara Women's Mckinley 42522 Pump Navy Leather/Patent Pumps , Adidas Originals Eqt Support Adv - Women's BB2326 TURBO Womens Size 8.56M Harley Davidson Riding Boots Heels Zip Strap Black Leather Ankle Sexy D83893 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14 - 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.

    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14 - 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
    Man's/Woman's Nike Man's/Woman's Kobe 29915 IV 4 'Rings' sz11 mogochinese-29920 High-quality a variety of classic style 6b0bf14
    Athletic Shoes
    >
    ;