Never miss an update

NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a




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
Modified Item: No
US Shoe Size (Men's): 10 Country/Region of Manufacture: Brazil
Upper Material: Leather Upper Style: Driving Moccasins
Color: Cognac Width: Medium (D, M)
Brand: Donald J Pliner Pattern: Solid
UPC: 735245203335
Never miss an update

NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a - blurrypron.com

    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a
    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a
    Mens Watches Top Brand Luxury LIGE Automatic Mechanical Watch Men Waterproof... , PUMA Mens Turin Etch Fashion Sneaker- Pick SZ/Color. , Men's SKECHERS RELAXED FIT: Braver- Nostic Casual Shoe, 64661 CDB Size 8 DBRBrand New Mens designer Swims loafers Size 6 Authentic Was$143 morethan 1/2 off! , Allen Edmonds Sz 9.5 D Mens Brown Two Tone Leather Shoes Vibram Sole S01MENS TSUBO ACHEROON SHOES US SIZE 8 (B9) , ALLEN EDMONDS Urbino Black Leather Tassel Casual Loafer Shoes Men's Size 9D , ALDO Men's NOSSA Oxford - Choose SZ/Color , Tommy Bahama Mens Garrett Woven Captoe Sneaker , Vintage Mens Shiny Slip On Loafers Casual Platform Creepers Brogue Oxfords ShoesSanita Karl Oiled Leather Clogs, Men's 9.5, Antique BrownSperry STS17319: Grey/Burgundy Gold A/O 2-Eye Nubuck Boat Shoes , Dr Martens Mens 9W Women 10 Industrial Steel Toe Boots, ASTM F2413-1, EHDaniel Steiger Hybrid Luxury Men's Dual Analog & Digital Sports Watch With... , COLE HAAN Men's Loafers Barley Nubuck Slip-On BOOTHBAY MSRP $150 , SPERRY TOP-SIDER STAR WARS Slip On Cloud R2-D2 C-P30 Canvas Shoes 12 Mens WhiteNEW Le Coq Sportif R900 Silicone Print 1520693 Mens Shoes Trainers Sneakers SALEORIGINAL PENGUIN MEN'S MONK 2X DARK CHOCOLATE SIZE 9 SHOES - BRAND NEW , New Fashion Mens Suede Rivet Studded Loafers Punk Rock Casual Slip On Shoes sizeNew Rockport Mens Black Leather Oxford Shoes Lightweight Vibram-Soles 14-M Nice!Lacoste Men's Lerond Trainers Black Casual Sneakers Canvas Sneakers Canvas , Bell-Horn Prescott Black Mens Therapeutic Diabetic Extra Depth Shoe , New Olukai Men's Mano Mesh Boat Deck Shoes Size 9m Mustang Toffee , Sperry Defender 2-eye Dark Brown BRAND NEW w/DEFECT Style: STS13166 Size 9 MMerrell All Out Crusher Rosin Mens ShoesNike Men's Blazer Low Classic Casual Sneakers / Fashion 317552 001 Sizes:10Stylish Men Vintage Occident Canvas Casual Shoes Japanese wire side Board Shoes , Puma GV Vulc Men's Size Black/White 35298202 Running Shoes , Havana Joe Mens Brown Leather Boots Size 13
    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a - blurrypron.com>NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a - blurrypron.com
    Lee Cooper Workwear LCSHOE054, Unisex-Adult Safety Shoes, Black, 5 UK (38 EU)Man's/Woman's Fabulicious FAYE-06 bargain Strong value A balance between toughness and hardnessJIMMY CHOO $550 PATENT LEATHER SPARKLE BALLET FLATS (7.5/37.5) , DEMONIA Womens Shoes Goth Mary Jane Platform Eyelette Strap CHARADE-05 Black PU , Men's/Women's ADORE-709OMBRE Fine workmanship Settlement Price Immediate delivery , ALDO Women's Staycey Dress Pump - Choose SZ/Color , New Authentic Christian Louboutin Pigalle Follies High Heels Size 36 , BALENCIAGA Black Mesh and Suede Pumps SZ 40 = US 9.5-10 - Pre-ownedSUPER SEXY!!! CASADEI HI HEEL PLATFORM BLACK LEATHER STRETCH ANKLE BOOTS US 10Asics Gel Kayano 24 Blue Purple/Regatta Blue/White Womens Sz 8Vans Men Authentic - Primary Mono blue imperial silver VN08EMMQ9 , Asics Gel-Cumulus 19 Men's Medium Width Athletic Running Shoes T7B3N-4358 , New Balance Men's 20v7 Minimus Cross Trainer Black/White 12 2E US , Philippe Model Men's Shoes Sneakers - TRLUWZ62 | Yellow | Fall Winter 18/19KOBE 9 IX EM Philippines Tsinelas sz 12 nike lebron yeezy jordan 1 3 4 5 6 lot 7 , Dr Martens Men's Warner Boots Chocolate US 12 NOB NWD , Air Jordan DMP Pack "DMP Pack" - 897563 900 , 8/10 Yeezy boost 350 turtle dove size 13 100% authentic , Men's New TW Ostrich Design Leather Cowboy Western Square Boots Red$200 REACTOR Tan Brown Leather BIKER Fashion Ankle Boots Men ShoesMens Animal Embroidery Slip On Casual Loafers Driving Moccasins Leather Shoes SZ , NEW Frye blk leather mens 12R Harness/Motorcycle boots 9 M Made USA! NWOB , Hairstylist Mens Pointed Toe Block Heels Buckle Skull Shoes Q2 Formal Gold Shoes , Nike Juvenate Women's Ale Brown/Ale Brown/Sail 44973200 , Gentleman/Lady Hermes Ballet Shoes (92973 New varieties are launched Impeccable comfortable , NIKE {859429-600} Women's Air Huarache Run SE Shoe Cedar/Cedar-Gum Yellow-WHITEN , Clarks Scheme Act Brown Suede Braided Strap Ankle Boot 6.5 NEW , ROADWOLF Size 7M Women's Brown Leather 3-Point Harness Western BootNot Rated Women's Sass It up Riding Boot , Womens Chic Elegant Velvet Round Tpe Back Zip Clear Block Mid Heels Ankle Boots
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a - 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.

    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a - 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
    NIB Donald NIB Pliner Mens Alondro Mens Penny Loafer Donald Driving Mocs Shoes 10 Cognac $165 4c48d0a
    Casual Shoes
    >
    ;