Never miss an update

ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62




Item specifics

Condition:
New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Styles: Trainers
Material: Real Leather Sole: Rubber
UPC: Does not apply Product Number: BY2507
Lining: Real Leather Product Series: Originals
Fastening: Lace Up MPN: BY2507
Occasion: Leisure Gender: Unisex (Men & Ladies)
Colour: Beige Brand: adidas
Never miss an update

ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62 - blurrypron.com

    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62
    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62
    ADIDAS ORIGINALS TUBULAR SHADOW CK BLACK MENS US9.5 SHOES DEADSTOCK NMD YEEZY , Adidas Originals Campus Leather Men's Sneakers Shoes Green bz0082 Gym Shoe NEWAdidas Originals Eqt Equipment Support Adv Men's Shoes Sneakers CQ2375 New , New Adidas Original Mens PROPHERE BLACK / BLACK CQ2126 US M 7-10 TAKSE AUAdidas Los Angeles [S79027] Original Running Black/Grey-RedMENS ADIDAS X 15.2 FIRM GROUND / AG LEATHER MEN'S FOOTBALL BOOTS SHOES , New Balance Classics 500 Men's Sneakers Shoes Gray White GM500OWN Trainers[bargain] Asics Gel GT 2000 5 Mens Running Shoe (D) (9099) , Nike Roshe One Premium Men's Sneakers Shoes Textile Grey Run Two 525234-012 NewReebok Crossfit Nano 8 [CN1037] Men Training Shoes Grey/White-Navy , Adidas Originals I-5923 Iniki Pride Men's Women's Sneaker Lgbt-Pride Shoes New , Bona Fide Brooks Adrenaline 13 ASR Mens Fit Running Shoe (D) (420) , Mens Nike Air Max 90 Essential - AJ1285100 - White Obsidian Platinum Trainers , Nike Air Zoom Structure 20 Running Black/White-Grey-Pure Platinum 849576-003Nike Zoom Fly Classic Running Sneakers 2018 Black/White-Anthracite 880848-001Puma AVID EvoKNIT Beige White Pebble Birch Ignite Mens Running Shoes 365392-07 , BROOKS ADDICTION WALKER MENS WALKING SHOE (2E) (001)SKECHERS MENS FLEX REFORM CHARCOAL SHOES 2018 **SIZES BEST SELLERAdidas Mad Bounce [CQ0490] Men Basketball Shoes Black/White-RedCONVERSE MENS CHUCK TAYLOR ALL STAR LOW TOP NAVY SHOES **FREE POST AUSTRALIANIKE MENS FLEX CONTROL II THUNDER GREY TOTAL ORANGE SHOES 2018 **BEST SELLERMan/Woman Adidas Energy boost Ltd edition Quality queen In short supply Reliable reputationSAUCONY MENS LITEFORM MILES GREY BLACK CITRON SHOES 2018 **ALL BEST SELLER , SKECHERS MENS CROSSBAR BLACK CHARCOAL SHOES 2018 **SIZES BEST SELLER , Asics GT 2000 4 Mens Running Shoe (2E) (9043) | SAVE $$$Mizuno Wave Rider 19 Mens Runners (D) (307) + FREE AUS DELIVERY , Nike KD Trey 5 VI EP [AA7070-010] Men Basketball Shoes Kevin Durant Black/Grey , Reebok Floatride RS ULTK Ultraknit Black Green Grey Gum Men Running Shoes CN2568Nike Air Huarache Mens Trainers Obsidian White Branded Footwear ,
    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62 - blurrypron.com>ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62 - blurrypron.com
    ACERBIS 0017811.090.042 LINER WATERPROOF WALKY NERO T.42 , Welder Protective Anti-penetration Iron Toe High Cut Safety Boot Slip-on shoesMen's/Women's Pleaser ADORE-708MR online sale Upper material Complete specificationsNEW Beverly Feldman Shoes Sz 35 5 Beige Animal Print Leather Ballet Flats , womens peep toes ankle strap block high heel summer sandals shoes party fashionWomens High Wedge Hidden Heels Pointed Toe Formal Work Office Pumps Shoes Sbox , Chic Womens Mid Heel Stiletto Leather Pointy toe Fashion Sandals Slingback ShoesWomens Sequin High Block Heel Rivet Round Toe Tassels Shoes Slip On RhinestoneParis Hilton Women's Wedge Sandals Platform Wedgies Lifties Black Ankle Strap , Nine West Women's Nole Synthetic Dress Pump - Choose SZ/Color , Nike SB Zoom Stefan Janoski men lifestyle kicks NEW elemental pink 333824-604 , Asics Gel Saga Black/Glow In The Dark H4A0N 9007 Men's SZ 11.5Air Jordan 1 I Retro Cool Grey 5 6 7 10 11 12 13 V VI VII X XI XII XIIICONVERSE CHUCK TAYLOR 70 CT OX LOW WHITE RED BLUE 1970 ALL STAR 149448C SZ 7 , Nike Air Zoom Pegasus 35 Mens 942851-002 Black Oil Grey Running Shoes Size 10 , KENNETH COLE REACTION BROWN LEATHER CHELSEA TELL A TAIL MANS ANKLE BOOTS SHOES~9GRUNDENS men's 15" Waterproof Rubber Hunting Fishing Outdoor Boots Made in USA , PUMA Select Men's Suede Angora Japanese Sneakers , Climate X 21592-2 Mens Brown Leather Slip On Comfort Dress Moccasin Shoes WIDE , Men's/Women's Orleans Burgundy Mezlan Monkstrap durability Affordable Clearance saleNew Balance National Parks 1300 Men's Classic Sneakers , Harpelunde Animal Buckle Men Dress Shoes Black Velvet Loafers Slippers Size 6-14 , Propet Tour Walker Strap - A5500 Women's Diabetic Black - 12 XX-Wide , Amazing German Shepherd Print Sneakers For WomenPuma Fur Slide Bay/Puma Silver 365772 01 Women's SZ 7.5T.U.K Kitty Embroidery Mary Jane Womens Black Suede ShoesMan's/Woman's WOMEN’S SHOES VANS U AUTHENTIC V4OPITN Complete specification King of quantity Highly appreciated and widely trusted in and outGentleman/Lady Snakeskin Heeled Booties Innovative design special promotion buy online , British Womens Ankle Boots Chunky Heel Pointed Toes Cheasla Slip On Chic ShoesDemonia 5" Matte Black Skull Bones Buckle Wedge Platform Knee Boots Gothic 6-11
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62 - 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.

    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62 - 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
    ADIDAS ORIGINALS SUPERSTAR 80s Shoes 80s ORIGINALS Beige Leather 29988 Trainers Men's Women's BY2507 d7aac62
    Athletic Shoes
    >
    ;