Never miss an update

Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3




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
Colourway: Racer Blue/Hyper Crimson-Black
Upper Material: Synthetic Model: Nike Air Max 270
Main Colour: Blue Style: Trainers
Sole: Rubber Product Line: Nike Air Max
Brand: Nike Product ID: AH8050-401
Lining: Textile
Never miss an update

Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3 - blurrypron.com

    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3
    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3
    Nike Air Force 1 '07 Low RocaFella Roc-A-Fella White Jay Z Limited Mens Trainers , Bogs Women's Arcata Stripe Waterproof Winter Boot , Puma Cell Endura Chunky White Green Mens Trainers 369357 01 , APL: Athletic Propulsion Labs Men's Techloom Phantom Running Sneakers, 10.5 M US , adidas Golf tour360 X BOA-M Mens Tour360 Boa Cleated Shoe- Choose SZ/Color.Adidas S76470 adidas X 16.1 Primeknit FG Mens Soccer CleatsSolar , PUMA Mens Suede Classic Mono Reptile Fashion SneakerM- Pick SZ/Color.Nike Air Max 270 Black White Solar Red Anthracite Mens Trainers AH8050-002 , Nike 639045-600 Mens Kobe 9 Elite Flyknit Lightweight Basketball Sneakers ShoesNike Air Vapormax Flyknit Grey Multicolor Size 10 Brand New in Box , BM4571 Columbia Mens Caldorado II Athletic Shoe- Choose SZ/Color.Nike Air Max 270 Midnight Navy Blue White Black Mens Trainers AH8050-400adidas Men's Adipure Tp 2.0 Golf Shoe - Choose SZ/ColorAdidas Ultra Boost 4.0 Triple White Primeknit Mens Trainers BB6168 6 7 8 9 10 11Nike Vapormax Air Flyknit Moc 2 Men Black Midnight S Fog Max Stucco NewNike Air Max 1 Premium Retro Dark Curry Brown White Black Mens 908366 700 , PUMA 19033703 Mens Ignite Evoknit Hypernature Sneaker- Choose SZ/Color.Salomon Men's Wings Pro 2 Trail Runner, - Choose SZ/ColorNike Air Max 270 Volt Bright Green Black White Mens Trainers AH8050-701 , ECCO Mens Biom Hybrid 2 Golf Shoe 11-- Pick SZ/Color. , Mizuno Running USA Mens Wave Creation 19 Shoe 11- Pick SZ/Color.Gentlemen/Ladies adidas NMD_CS2 Primeknit Shoes Men's durability Low price Easy lifeadidas Men's Crazyflight X Mid Volleyball Shoes - Choose SZ/ColorNike Air Max 270 Elemental Gold Black White Mens Trainers AH8050-700 , Nike Air Max 270 Triple Black Mens Trainers AH8050-005 sizes 6-13 , PUMA 36241703 Mens Future Cat M1 Citi Pack Walking Shoe- Choose SZ/Color. , Nike metcon 4 Black Gum Mat Fraser ar8819 001 training crossfitadidas Originals Men's Barricade 2018 Ltd Tennis Shoe - Choose SZ/ColorSalewa North America Mens Ultra Train GTX Mountain Training Shoe ,
    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3 - blurrypron.com>Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3 - blurrypron.com
    Rachel Comey Mars Boot Size 6 Black Ankle Bootie , Geox U Nebula B, Men Low-Top Sneakers, Black Black , 9 EUMen Buckle Ankle High Suede Leather Shoes Handmade Jodhpurs Casual Leather Boots , Nike Free Flyknit Mercurial Hi Top Running Trainers 805554 004 Sneakers ShoesSkechers Go Run Fast Invigorate Blue Navy Women Running Shoes Sneaker 15102-NVCLAna Lublin Women's Brown Penny Loafer Moccasin Vintage Effect , Marc Jacobs Reed Buckle Metallic Leather Ballet Flats, Women's Size 8, SilverTod's flats ballerinas in off white lux leather black toe , Sesto Meucci 2881 Plata Sara Pedreria Women's Wedge Heel Sandals Size 6 MJimmy Choo 7185 Women's Dorothy Polka-Dot Mesh Flat Size 39 EU $595New Womens High Heel Platform Round Toe Lolita Bowknot Mary Jane cosplay shoes , COLE HAAN Women's Leather Medium Slim Heels Comfort Pumps Shoes Size 8B BrownLady Womens Gladiator Sequins Open Toe Stilettos High Heel Pumps Sandal ShoesBettie Page Layla Shoes - Green Retro Rockabilly Pin Up Vintage InspiredWomens Leather Mid Heels Furry Slingback Buckle Sandals Ladies Pointy Toe Shoes , Ted Baker London Appolini Triple Bow Sandal size 8Men's/Women's NEW Gina Beige Stiletto Size Innovative design Clearance Caramel, gentleSize 8 NEW!! TORY BURCH FLEMING QUILTED LEATHER FLIP FLOP FLAT SANDALS ROYAL TANPrada Leopard Calfskin Pointed Toe Kitten Heel Pumps US 7 , PUMA Suede Classic Sneaker, Ash White, 10.5 M USNIKE LUNARCHARGE ESSENTIAL BLACK-DARK OBSIDIAN-VOLT SZ 11.5 [923619-007]Concepts Asics Gel Lyte iii Boston Tea Party Size 12.5 , Columbia Men's Newton Ridge Plus Ii Suede Waterproof Wide Hiking ShoeMens genuine leather casual shoes green/brown US 10Mr/Ms Timex Men's Chesapeake Watch Online Shopping Quality First Non-slipMerrell Women's Tremblant Pull On Polar Boot Merrell Oak Leather , Mr/Ms Qupid Women's Milia-152 Fashion Boot Complete specification range Preferred material Clearance sale , Ariat Women's Heritage R Toe Brown Western Cowboy Cowgirl Boots 10001015 Size 6BColumbia Women's Minx Mid Alta Omni-Heat Snow BootEggplant We Are The Original Double Zipper Boots 6 36
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3 - 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.

    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3 - 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
    Nike Air Max 270 Racer Nike Blue Hyper 29937 Racer Crimson Black Mens Trainers AH8050-401 6e005b3
    Athletic Shoes
    >
    ;