Never miss an update

VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f




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
Shoe Size: it40
Main Colour: Black Brand: VERSACE
EAN: Does not apply
Never miss an update

VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f - blurrypron.com

    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f
    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f
    NIB DOLCE & GABBANA Made In Italy Leather Sneaker Size-36 $895FENTY PUMA by Rihanna Women Sneakers High Heel Suede Black-White (Size 6.5) NEWHunter Women's Original Insulated Commando Boot Black Waterproof , CHRISTIAN LOUBOUTIN RANTUS ORLATO FLAT PONY SNEAKERS ANIMAL print women 36eu 6usNike Air Max 97 Swarovski Crystal AIR MAX DAY BNIB RARE RECEIPTadidas Women's VS Hoops Mid 2.0 W - Choose SZ/Color , NWOB$1245 Brunello Cucinelli Metallic Leather Monili Beaded Sneaker 40/10US A186 , NIB Fendi Blue White Silver Grey Stretch Knit Logo Metallic Flat Espadrille 37 , NEW Golden Goose Superstar Sneakers Sz 39/9 , Balenciaga Black White Race Runner Sneakers Shoe 39 , Tom Ford Burgundy Flat High Top Walking Sneakers Shoes $970 40Tom Ford Black Flat High Top Walking Sneakers Shoes $970 38.5 , NIB golden goose superstar low top sneaker size 35Fendi Fun Fair Logo Sneakers Women's Size 38.5 US 8 - 1365 , BALENCIAGA TRIPLE S PINK WHITE BLACK US 12 CM WOMEN'S SNEAKER , Saint Laurent Paris SL/10 Sneakers.....(YSL, Suede, Js, Vandal, MJ, Luxury, VTG) , NIKE W Nike Air Vapormax Flyknit Running E 922914-002 COOL GREY Size 9.5MIU MIU 5KP222 Pink Suede Designer Pumps Open Toe 7.0 M , Korkers Women's Verglas Ridge Boot with SnowTrac & IceTrac Soles Black/GreyHermes Kelly By Color Jumping Boots R2-188893 (50462 , NIKE W Air Max 270 Flyknit AH6803-300 CLEAR EMERALD Size 7 , Hermes Lennox Koriedoshian Studded Sneakers R2-227316 Unused (52047Golden Goose Deluxe Brand Superstar Francy Sneakers for Women GCOWS591.G3 , Golden Goose Women's Sneakers Superstar Blue Diamond-Cream GCOWS590.Z1 , NIKE AIR FORCE 1 LOW 'LOVE' WHITE BRIGHT CRIMSON [AR5432-167] US WMNS SZ 8Man's/Woman's Versace Chain Reaction Sneakers Size: Us7 New product a wide range of products Modern and elegantASICS Women's Mens Fitness/Cross-Training Trail Running ShoeChristian Louboutin High-top sneakers Bijou leopard black , Ecco Footwear Womens Mobile III Tie Slip-On Loafer ,
    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f - blurrypron.com>VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f - blurrypron.com
    Musse & Cloud Women's Caila Boot 38 M EU / 6.5-7 BM US, Cue , Dolce Vita Women's Rain Bootie Black Leather Ankle Boots , Reebok Classic Furylite Fury Lite White Solar Yellow Shoes Shoes Trainers , Asics - Men's Gel Cumulus 19 - Directoire Blue/Peacoat/Energy Green , Les temps de Cerises Mens Basic Hot Shot Trainers, Black Glitter Black, 5 UK , ara Women's Nery 30844 Green Nubuck LoafersNWOB Rare Shoes For Crews Women’s Leather Carter Non-Slip Shoes Sz 9.5NEW Tahari Designer Sloan Pumps Black Satin Leather Peep Toe Heels 9.5 M $178 , Wedge Boots Matt Bernson FNL Size 8 - Brand NewNIB Valentino Rockstud Leopard Bronze Pony Fur Stud T Strap Heel Pump 35.5 $1345 , NEW VIBRAM FIVE FINGERS SHOES SPRINT W1132 SIZE 39 CHILI PEACH RED ORANGEWomens 11 M Madewell Boardwalk Slide Black Leather Flat Sandals Slip-On Open Toe , Doctor Who - Tardis - Ladies Boot Slipper - 11 Inches Free Shipping! , Adidas Men ZX Flux blue ocean white B34515adidas Men's Freak X Carbon Mid Football, Black/White/Metallic Silver, Size 13.0 , Asics Mens Conviction X 2 Shoes S802N Deep Ocean/Black Size 9.5 , SALE NIKE KOBE AD A.D. NXT HMD WOLF GREY DARK 882049 002 14 NEW DS LAKERS , Nike Air Jordan 11 XI Retro Low Promo Sample SZ 13 Alternate Nightshade MJ PE OG , VANS Marvel collaboration Old School from japan (600 , Rare Ascis Low Top Japan Blue/Orange size 10 EL310 , $1,115 Italy GIUSEPPE ZANOTTI Velour Fondente Zipper Black Suede Boots 9-US 42MEN'S VINTAGE RED WING IRISH SETTER 866 PULL ON BOOTS SZ 11 3 E MADE IN USAMen Kenneth Cole Shoes Design 10917 Fashion Black Size 12Fashion Womens Sport Shoes New Punk Casual Sneakers Hot Leather Shoes Round Toe , ASICS Gel-Nimbus 18 Running Shoe- Women's 10.5(2A)- Titanium/White/Turquoise , New Balance NB WCH896P2 Women's 896v2 Blue Performance Tennis Shoes SneakersNike Air Huarache Run Ultra DB Doernbecher Jade Kermit 898634 700 Women's Sz 7New Balance Women's 09v1 Training Shoe Black/White 8 B(M) USKenneth Cole New York Women's Ingrid Ankle Bootie, Natural Multi, 6.5 M US , Sam Edelman 4714 Womens Taye Black Suede Ankle Boots Shoes 9.5 black
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f - 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.

    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f - 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
    VERSACE Medusa Leather Trainers 29916 sneakers 40 Authentic Authentic sneakers New f3ace9f
    Athletic Shoes
    >
    ;