Never miss an update

Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958




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: Saucony
Color: Gray/Black/Citron Style: Running
Never miss an update

Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958 - blurrypron.com

    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958
    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958
    34 Nike Hyperdunk 2017 FK Flyknit Basketball Shoes Blue Mens Size 9 843390 404Nike Air Max 1 Ultra SE mens lifestyle casual sneakers NEW team red 845038-601Nike Cortez Basic Jewel Mens Running Trainers 833238 Sneakers Shoes 002 , Adidas Originals Tubular Shadow Mens Running Trainers Sneakers AC8106Nike Roshe Two Mens Running Trainers 844656 Sneakers Shoes 004Adidas Men's Energy Boost M Running Shoe , Mens ADIDAS ZX FLUX Light Green Textile Synthetic Trainers AQ4535 , Etnies Skate Shoes - Marana Michelin - Skateboarding Trainers Dark Grey Blue , Nike Blazer Studio QS Mens Trainers 850478 001 Sneakers ShoesNike Tanjun Racer [921669-004] Men Casual Shoes Black/PlatinumNIKE AIR HUARACHE DARK GREY WHITE 318429-037 9 9.5 11 , Reef Surf Style Shoes - Spiniker Mid NB - Brown, Premium Leather Upper , Nike Free RN Motion FK 2017 Flyknit Mens Running Shoes Multi color Multi size , NIKE LUNARGLIDE + 4 MEN'S SIZE 10 NEW IN BOX ELECTRIC GREEN 524977 304NEW ADIDAS ORIGINALS TUBULAR SHADOW MEN'S SHOES TRACE BROWN 3D DIAMOND BB8974 , Mens NIKE ZOOM HYPERREV 2016 FRAGMENT Trainers 848556 001Nike Air Force 180 Barkley Size 11 Men's Black Royal Blue White 310095-011 NEWAdidas Mens Gazelle NBHD NEIGHBORHOOD Black DA8836 , Adidas EQT Bask ADV Shoes Men's Size 8.5- AQ1013- Black White Red , **LATEST RELEASE** Asics Alpine XT Mens Trail Running Shoes (D) (8116) , Gentlemen/Ladies Air Jordan 7 Hare Size 10.5 New varieties are launched luxurious Excellent stretchingMen's Under Armour UA SpeedForm Gemini 3 Running Shoes Training SneakersNEW MENS SZ 9.5 NIKE LEBRON XIII (13)LOW PREM. (AH8289 001) ANTHRACITE GREY , NIKE AIR ZOOM TALARIA MID FLYKNIT BLACK/VACHETTA/TAN ACG SIZE 10.5 , Brand New in Box Nike Air Zoom Pegasus 34 Men's Running Shoes 880555-003 BLACK , adidas originals SUPERSTAR PHARRELL SUPERSHELL S83350 mens trainers sneakerPuma Explorer High Top Sneakers Brown /Beige 348597-04 Size 7.5 USA , FACONNABLE Luxury Fashion Sneakers Shoes Italy US.12 UK.11.5 EU.45 , Air Jordan 12 XII Retro Grey Wool SZ 9.5 ,
    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958 - blurrypron.com>Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958 - blurrypron.com
    ALEJANDRO INGELMO SHOES MIA HIGH HEEL PLATFORM BOOTIES ANKLE BOOTS BLACK LEATHERHunter Women's Original Refined Mid Wedge Matte Black Rubber Tall Rain Boot 10 , Corral Women's Western Snip Toe Leather Cowboy Boots Red Wings & Heart Inlay A34KENDALL + KYLIE Tenley Platform Slip On Sneakers, Gold Leather, 8 USBirkenstock Active-Birki PU Unisex Clogs Shoes Sandals Slippers , AM812 SERAFINI shoes blue orange suede women ballet flats EUDr Scholls Dance clogs Size 8 Black Scholl’s Rubber Shoes ComfortMan/Woman Miu Miu Satin Espadrilles Ballerina Platforms durable Let our products go to the world Various latest designs , Juicy Couture FERNANDA Coral Wedge Sandals 7029 Size 9.5 M NEW! , Valentino Love Latch Strappy Grommet Leather Poudre SandalsNew On Cloud Womens Cloudcruiser Running Shoes , Women Ankle Strap Wedge High Heel Platform Pull On Pearl Spike Casual PartyShoesGivenchy Striped Mink Fur Pool Slide Sandal, White/Red 41Diamond Supply Co Boo J XL Slip On Skateboard Shoes - Burgundy27 New Nike Zoom Victory 3 Running Shoes Rio OC 835997-999 Track Mens Sz 6-12 , New Nike Air Humara '17 QS Concord Cream Men's 11 Trail Hiking Shoe AO3297 400 , Nike Air Entertrainer Size 9.5 Men Varsity Red New Rare Legit Brilliant Comfort , NIKE AIR JORDAN VI 6 ALL STAR CHAMELEON BLACK WHITE GREEN SZ 18 [907961 015] , Shoes Eqt Support Sk Pk adidas Black Men B37522 , NIKE AIR MAX 90 ULTRA 2.0 ESSENTIAL BLACK WHITE-WHITE Men Shoes 875695-008 10'Blundstone Men Women Canvas Chelsea Lightweight Boots Factory 2nds Brown 11 , Reebok Streetscape LX Lux Black White Men Casual Shoes Sneakers BD1301 , Thorogood 834-6932 Mens Street Athletics Liberty Shoe FAST FREE USA SHIPPING , AnnaKastle Womens Fur Trimmed Suede Leather High Top Fashion Zip Sneaker BootsWomen's Nike Free Run Natural Free & Flexible Athletic Shoe Size 8.5 New W/ BowVANS ISO 1.5 (Moroccan Geo) Tan/White UltraCush Trainer MEN'S 7.5 WOMEN'S 9 , NIKE AIRE HUARACHE CITY PREMIUM - WOMEN'S - BLACKEllie Gogo-Red Dancer Club Retro Cherry Zip Up Costume Punk Boots 3" Heels ShoesHK BY HEIDI KLUM WOMEN'S ALANA FASHION BOOTIES CIGAR LEATHER US SIZE 5.5 MEDIUM , Black Frye Motorcycle Harness Boots Size 3.5
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958 - 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.

    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958 - 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
    Saucony Men's Hurricane ISO 29986 In 3 Gray/Black/Citron S20348-1 ISO Brand New In Box 9acf958
    Athletic Shoes
    >
    ;