Never miss an update

Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000




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: Jade/Black/White Product Line: Converse Chuck Taylor All Star
Brand: Converse Type: Low Top
Never miss an update

Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000 - blurrypron.com

    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000
    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000
    Nike SB Stefan Janoski OG Dark Army Sail Sz 10.5 833603-331 , Flex Contact Men's Running/Cross Training Shoe Sz. 12 , New Lonsdale Remi Mens Running Trainers ALL SIZES AND COLOURSNew Nike Zoom CELAR V (5) Sprint Running VIOLET 629226 514 SIze 9 Men's it/176New Balance Men's Fresh Foam CRUZ Running Shoe Style MCRUZGR , Globe Mens Mojo Legacy Sneakers Black/ Gum/ Plaid Size 9 New , Mens Nike Jordan Aero Mania Shoes Basketball Sneakers 552313 402 Size 18PUMA Mens Ignite Limitless Leather Sneaker, Black-Gold Size 13 , Clarks Men's Bushacre Hill Chelsea Boot Beeswax Leather Comfort Shoes, sz US 9VANS OLD SKOOL VN0A38G1Q9X FRAPPE/TRUE WHITE MEN SZ 7.5 ( WOMEN 9 ) , Nike Max Air Torch 4 Running Athletic Shoes Mens 8.5 Gray Black SN 343846-012 , Nike Men's Air Huarache Light PRM MIDNIGHT FOREST/OLIVE sz 10 LIMITED NEW!! , NIKE CR7 MERCURIAL VICTORY VI FG [852528 376] RONALDO SOCCER CLEATS SZ 11 , New Size 7 Puma X Careaux Basket Graphic Twilight Blue/Halogen Blue 363435 01631041-310 Nike Men Zoom Bruin SB Premium (teal / night factor / white / black) , Nike SB Stefan Janoski Black Sail White Sz 10 615957-015Vans Era 59 Black Brown Geo Weave Men Women Casual Skate Boarding Shoes 53010230 , Air Jordan 4 Retro "Pure Money" Shoes GG8 White/Silver 308497-100 Size 12.5 , new balance 990 size 10 4e wide mens walking runningMan/Woman Jordan 1 Premium Gold Easy to use New products in 2018 Current shapeNIKE AIR ZOOM TALARIA '16 844695-003 NEUTRAL GREY DS SIZE: 13 , Man's/Woman's NIKE-AIR-MAX-MERCURIAL-98-FC-SHOES-MIDNIGHT-TURQUOISE-10 -832684-300 NIKE-AIR Louis, elaborate online shop Don't worry when shopping , ADIDAS ORIGINALS TOP TEN HI POLKA DOT SUPERSTAR SNEAKERS Basketball MENS SZ 9 US , NIKE LIL PENNY POSITE PRM QS ALL STAR GUMBO BLACK ATOMIC RED 652121-001 SZ 12 , NEW Nike Mens Toki Low TXT Print Skateboarding Casual Shoes 631697-004 SZ 11Nike Cortez Basic Nylon Obsidian/White-Metallic Silver (819720 411) size 8Under Armour Curry 2.5 Black Taxi Yellow Batman Two UA 1274425-005 Size 9 & 9.5 , NEW Mens Nike Huarache V 5 Lax Lacrosse Cleats Wht/Metallic Silver 14 FREE SHIP , Reebok Classic Renaissance Powder Grey/Skull Grey Mens Fashion Sneaker Size 12M ,
    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000 - blurrypron.com>Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000 - blurrypron.com
    White Mountain Cliffs Kesha Mid Calf Winter Boots, BlackBrown Handmade Cowhide Leather Dress Shoes Oxfords Quality Leather Formal Boots , OSCAR de la RENTA SHOES SIZE 36EUMary Jane Women Platform Ankle Strap Super High Heels Dress Shoes Nightclub SzWomen’s Jimmy Choo Patent Leather Platform Peeptoe Pumps Heels Nude 38Pleaser 6 1/2" open toe black studded platform bootsLovely Worn Once Lanvin Wedges in Amazing Color!Authentic MIKE and CHRIS Irwin Shoes - Navy - SIZE - 40/10 - Retail $600.00NIB MARC BY MARC JACOBS RASPBERRY PATENT LEATHER BOW MARY JANE PUMPS 39 ITALYB.O.C. Born Concept Lowery Slingback Flat Sandals 581, Blush/Light Gold, 6 US /AUTHENTIC CHRISTIAN LOUBOUTIN PIGALLE FOLLIES RED/ORANGE HEEL PUMP/37.5Jack Rogers Women's Abbey Wedge Sandal - Choose SZ/ColorNEW CUSHIONED FLIP-FLOP BLUE SANDAL SLIPPERS SHOES SIZE 36 , Prada Wedge Heel Sandals Brand New or US 8 , adidas D LILLARD 2 - Burgundy - Mens , Adidas Mens Sneakers SM Crazy Bounce NBA B39318 MSRP: $110Nike Free Trainer V7 Week Zero "Texas Longhorns" AA0881-800 Size 13NIKE AIR FOOTSCAPE WOVEN NM SZ 8.5 WOLF GREY BLACK WHITE RUNNING SHOE 875797 004 , Nike MEN'S Kyrie 4 Black/White SIZE 12 BRAND NEW ANKLE TAKERAdidas Pureboost Dpr Mens Running Trainers Sneakers S82010 , ARIAT Men's Heritage Roper Cowboy Boots Size US 7.5 EE / W 10002284 35525 , New Florsheim Ardmore 8 EEE black (636)Red Velvet Loafers Men Wedding Shoes With Metal Circle moccasins Driving SHoes , Ferragamo 'Parigi' Gancini Driver Karung Snake Bit Loafer 9 EE $995 RAREStacy Adams Mens LAVINE WINGTIP DOUBLE MONK STRAP Saddle Tan Formal 25171-492 , Womens Hiking Shoes By Keen "American Built" Size 7.5 M USA Water Proof , New Under Armour 1298675 100 SpeedForm Black Women's Running Shoes 8 USNew Under Armour 1285482 002 SpeedForm Europa Black Women's Running Shoes 7.5 US , Authentic Adidas Women's Tubular Dawn W Trace Cargo BZ0628 BRAND NEW IN BOX 8New Balance Women's Shoes U410 NY Size 5.5 us
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000 - 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.

    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000 - 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
    Converse Chuck Chuck Taylor All-Star Oxford Jade/Black/White Converse (155562F) (155562F) 711a000
    Athletic Shoes
    >
    ;