Never miss an update

Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3




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: Rockport
Color: Black Style: Oxford
Material: Leather Pattern: Solid
Features: Cushioned, Lightweight, Slip Resistant, Waterproof
Never miss an update

Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3 - blurrypron.com

    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3
    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3
    Rare New 2009 NSW Nike Air Royal Mid QS Black Work Boot Black Burgundy 389584 8 , Man's/Woman's Men's adidas Springblade Running Shoes the most convenient The highest quality material Explosive good goodsClarks Padmore II Lo Mens Stinson Lo- Choose SZ/Color.MERRELL MENS ENCORE REXTON SLIDE AC+ CASTLEROCK SIZE 10Clarks 26130644 Mens Vanek Apron Loafer 1- Choose SZ/Color. , Lacoste Men's Lerond Fashion Sneaker - Choose SZ/Color , crocs Mens Beach Line CanvasBoat ShoeUS- Pick SZ/Color.Lacoste Men’s Lt Fit Sneakers - Choose SZ/Color , Mens stylish ankle short high Top Boots leather fur lined winter warm shoes hot , OLUKAI MENS SHOES NOHEA MOKU DARK SHADOW SIZE 11.5COLE HAAN TUCKER GRAND MEN'S CHESTNUT LEATHER SLIP ON SHOES SZ 13, #C20044 , Nautilus Men's Brown Leather Steel Toe SR SD Slip On Work Shoe N1620VISVIM x Cabane De Zucca Purple US10 (28cm) UWOB 2001 100% Authentic FIL Cubism , Calvin Klein Men's Piper Oily Suede Slip-On Loafer, - Choose SZ/Color , Sperry Top-Sider Men's Sahara Original 2-Eye Boat Shoes, Genuine All Leather , Donald J Pliner “Victor” 2 Tone White Ivory Suede Leather Loafers Shoes 14 EXC , New Mens Converse DR. SEUSS 'How The Grinch Stole Christmas' CT 119104F Shoes , MCRAE OCP COYOTE HOT WEATHER BOOTS US ARMY ISSUE 9.5 REG VIBRAM SOLENew Designer Winter Men Boots Shoes Warm Zapatos Hombre Motorcycle Zipper Boots , Ben Sherman Men's Percy Suede Fashion Sneaker - Choose SZ/Color , Nike MEN'S SB Zoom Dunk High Pro SIZE 11 BRAND NEW Red White Blue SkateboardingCAMPER MAN CASUAL FREE TIME SNEAKER SHOES SUEDE CODE 18873-002 , Man's/Woman's Rocky AlphaForce Oxford Shoe flagship store First grade in its class A balance between toughness and hardness , Rockport Men's Style Future Plain Toe Oxford - Choose SZ/Color , Cole Hann Grand.OS Size 9 Brown Leather Loafers New Mens Shoes , TRASK BROWN DISTRESSED SLIP ON POWER SHOES 9 M , Dr. MARTENS R16544601 - Dante Size: - Color:Brooks Brothers Mens Tie Driving Moccasins Size 10 NWT , Nike SB Zoom Blazer Mid Black White Mens Suede Skateboard Shoes
    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3 - blurrypron.com>Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3 - blurrypron.com
    Melissa - Women's Fusion AD - Pink BeigeLoeffler Randall Women's Greer (Leather), Black, 10.5 B US , Etnies Metal Mulisha Fader 2 Men's Skate Shoes Charcoal Motocross Men Fx , Mens Dress Formal White/Blue Slip On Real Leather Shoes All Season Business newAir Jordan 6 Retro OG Wheat Flax US9 + Receipt Brand New Limited NMD Boot MJTrask Womens Gianna, Black, Size 7.0 US / 5 UK , **Frye Melanie Perf Slip On - Women's Size 8M, Silver , Sanita Women's Debora Mule - Choose SZ/Colorstubbs wootton black Velvet men 8 or women 10Super Sparkly Stilletos 5inches Brand New Glitter! Size 9V 1969 Italia Womens Loafer Yellow PISA , Tod’s Ladies Shoes High Heels Red Leather , Pleaser Women's Cocktail-501/C/M Platform Sandal - Choose SZ/ColorWomens Sexy 18CM High Heel Stiletto Party Open Toe club Sandals shoes plus Size , BLACK-RED PATENT LEATHER BALLET BOOTS SIZE 10-16 HEELS-8,1"- PRODUCER- POLAND , Black Prada Women Shoes size 7 US or 37 1/2 EU , Birkenstock Ramses Bs Gizeh 260 Thong Sandal Brown 40 Men’s 7 Women’s 8 NewKeen Uneek Slice Fade Women's Sport Sandals Size US 7 M (B) PoseidonMen's Nike Air Max ST Black/Hyper Crimson-dark grey Noir/Gris Fonce SZ 10.5 New , NIKE AIR MAX ZERO QS Mens 9.5 789695 004 $150 NEW , $210 Donald By Donald J Pliner Mens Bakula Harness Dress Shoes, Tan, US 11.5RALPH LAUREN POLO ANKLE BOOTS COGNAC BROWN LEATHER MONK STRAP ITALY SZ 40 / 7 EEMerrell Conduit Bronte Desert Sage Brown Leather Oxfords - Size 9Salvatore Ferragamo Burgundy Leather Tassel Kiltie Loafer SZ Mens 11.5 D Nice! , Converse Andy Warhol Chuck Taylor All Star Platform women's shoe campbell soup 7[355462-66] New Women's PUMA Suede Classic Sneakers - Black PinkSKECHERS Relaxed Fit, Memory Foam, Athletics Women’s Shoes , Khaki Size 6 , Nike Air Zoom Fearless Flyknit White/Wolf Grey/Hyper Grape/Vapor Green 50426103Hunter For Target Women's Waterproof Ankle Rain Boots Pink Size 10Ariat 10012903 Heritage Western R-Toe Leather Cowboy Boots Womens 6.5 NEAR MINT! ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3 - 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.

    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3 - 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
    Rockport Non-Slip Shoes: Men's Non-Metal Non-Slip Men's Oxford Work mogochinese-24821 Shoes RK6501 e6939b3
    Casual Shoes
    >
    ;