Never miss an update

New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a




Item specifics

Condition: :
An item that has been or previously. See the seller’s listing for full details and description of any imperfections.See all condition definitions- opens in a new window or tab
Seller Notes: Mint condition. Please see the photos for more details.
Brand: New Balance Color: dark blue
Style: Running Country/Region of Manufacture: United States
US Shoe Size (Men's): 8.5 MPN: Does not apply
Euro Size: 42 UPC: Does not apply
Never miss an update

New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a - blurrypron.com

    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a
    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a
    AIR JORDAN 11 RETRO CONCORD 2011 SIZE 9 , NEW AIR JORDAN 13 XIII RETRO CP PE Chris Paul Black Blue 823902-015 MENS Size 11 , Adidas M17698 NWT Adipure 360.2 Running Shoes Earth Green/Black/White 12.5 ANB , 1803 adidas Ultraboost Uncaged Men's Training Running Shoes DA9160100% Authentic Air Jordan IX Cool Gray (2012) Deadstock Size 12AIR MAX 90 DNM QS 'INFRARED WASHED DENIM' - 700875-400 - SIZE 9.5 , Nike Kobe 8 SS 'Christmas' XMAS VIII size 14Air Jordan 5 Retro University Red Suede Flight Suit Black DS AS MVP Limited 2017AUTHENTIC Adidas Yeezy Boost 350 V2 Triple White US SZ 9 - Brand New IN HAND , NIKE LEBRON 10 X PHOTO BLUE-WIND CHILL DIAMOND SZ 10 [542244-400]Gray Suede Nike KAWS X Air Jordan 4 Cool Breathable Men's Basketball ShoesNike Air Jordan V 5 Retro LANEY BUCS WHITE YELLOW BLACK ROYAL BLUE 136027-189 12 , Adidas Yeezy Boost 350 V2 Butter size 9.5 F36980 , Nike Air Max PLus La Requin The Shark France AJ6301 400 Men , Nike Air Jordan Retro 11 XI Win Like 82 Midnight Navy White Mens Size 9 DS New , Domestic regular Nike Air Jordan Horizon Premium 27cm from japan (4274 , Belvedere Men's Astor Genuine Crocodile & Calf Sneakers 3000 RedNIKE AIR MAX 95 OG MC SP ERDL PARTY CAMO WHITE MULTI MEN'S TRAINERS ALL SIZESNike Air Max 90 DNM QS Denim Infrared Atmos size 12Jordan Retro 13" He Got Game White/True Red-Black (13 D(M) US)NEW Jordan Retro 3 Katrina Hall of Fame Retro White-Cement / Fire-Red , Man/Woman Gator King LeBron XI Size 10.5 economic special function Acknowledgement feedback , Nike SB Gato SUPREME BLACK Skateboard Shoes Brand New Size 8 Quick StrikeAir Jordan 11 Retro Legend Blue 378037-117 White Mens Shoes Size 9 New DSNike Air Jordan 4 IV LS Columbia Navy Remastered 314254-107 size:6.5 & 10.5 , EXCLUSIVE MATCHCOURT ADIDAS (ZUMIEZ 100K Editon) !!Nike Air More Uptempo NYC QS Mens AJ3137-001 Wolf Grey Navy Shoes Size 13 , NIKE AIR JORDAN XX BLACK-STEALTH-VARSITY RED SZ 10.5 [310455-002]Air Jordan 2.0 Retro 05/25/2011 BLK/CLSSC GRN-VRSTY RD-WHT 455616 005 2018 ,
    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a - blurrypron.com>New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a - blurrypron.com
    Cole Haan Womens Shoes Size 8 B Brown Genuine Leather Buckle BootieFrye Melissa Button Boots Shoes Size 6 B WOW (())EUC! La Sportiva Leather trekking boots Cowhide 02078 Makalu sz 40 Italy Hiking , Frye Jenna Cut Stud Distressed Leather Biker Moto Short Boots sz: US 6 , Men Handmade Suede Leather Shoes Jodhpurs High Ankle Chelsea Suede Leather BootsMen's/Women's Sneaker Church's Mirfield elegant Let our goods go to the world Sales online storeA35 Ayaa Ankle Boots 856, Black, 8 US , Paperplanes Womens Ugly Shoes Trainers Athletic Sneakers 1473Troentorp Bastad Swedish Clogs: Wright, Napa Tan, Size 36 , J,Crew $228 Ankle-wrap slingback heels with embroidery 7 G4102 pink green multi , Danner Womens Springfield Leather Cap Toe Ankle Working Boots , Chow Chow Christmas Running Shoes For Women- Free Shipping , Donald J Pliner Frea Women's Sandals SilverMr/Ms Eastland Women's Baylee Wedge Pump Clever and practical First quality TRUEAF6590 WOMEN ADIDAS SLINGSHOTTrail Running CrossTrainer ShoesPUMA Men's Mostro Sirsa Sneaker - Choose SZ/Color , Nike Air Zoom Vomero 8 Running Shoes, Men's Size 12, Yellow/BlueMade In Italia GIULIO Men's Low Top Casual Classic Sneakers BlackAdidas Men’s NDM _ R1 STLT Prime Knit PK Black/Red Satellite CQ2385 SZ 8 New , Nike Mayfly Woven Summer 2017 Men's Shoes Celery/BlackNike Men's Lebron XII Low Basketball ShoeNew Balance Men's 530 Must Land Pack Fashion Sneaker - Choose SZ/Color , men's shoes SKECHERS 11 () sneakers black suede BX182-45 , Men's Corcoran Brown 10 '' Cap Toe Historic Jump Boot 1510 D , EUC Vince Men's Sawyer Chelsea Black Suede Size US 9 Fashion Ankle Boots A3NEW Puma Suede Platform 362223-03 Womens Shoes Trainers Sneakers SALECONVERSE WOMEN’S SHOES ALL STAR HI CANVAS METALLIC 153178C , Salomon Women's X Ultra Prime CS Waterproof W Hiking Shoe - Choose SZ/Color , Skechers Women's Hampshire-NORDIC DAZE 48894 Black/Wht 3M Thinsulate Waterproof , Reebok Women Hiking Trail Boots Size 9 Euro 40 Brown Steel Shank Hexilite Heels
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a - 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.

    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a - 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
    New Balance M990NLE4 Running Shoes Balance Dark Mint Blue Mens Shoes US8.5 UK8 EU42 NOS Mint 223062a
    Athletic Shoes
    >
    ;