Never miss an update

342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07




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
Brand: Jordan
US Shoe Size (Men's): Please check in drop down menu Style: Athletic Sneakers
Never miss an update

342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07 - blurrypron.com

    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07
    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07
    Nike Air Huarache Utility Base Grey/Light Ash Grey (806807 003) , Nike PG2 Pure Platinum Grey Aurora Green Men Sz 10.5 Paul George AJ2039-002 , NEW MENS ADIDAS SPEED TRAINER 3.0 RUNNING SHOES TRAINERS BLACK / IRON MET / POWENew Balance Men 696 Seaside Hideaway MRL696KM gray light grey navy MRL696KMBrooks Adrenaline GTS 16 Mens Runner (2E) (181) + Free Delivery Aus Wide , Men's Jordan Air Imminent Off Court Shoes, 705077 010 Size 12 Black/Grey Mist/Wh , Adidas Ransom MILITARY TR Mid NAVY HI TOP SHOES Limited Edition Size10 us G63377 , {BS9115} REEBOK ZOKU RUNNER ULTK IS NAVY/BLACK *New*New Balance Men 574 Fresh Foam MFL574BG black green MFL574BG , Asics Gel-Cumulus 19 Glacier Grey White Blue Men Running Shoe Trainer T7B3N-9601adidas SM Crazy Explosive 2017 Primeknit - Red - Mens , New Balance MRL247ON D 247 Brown Men Running Shoes Sneakers MRL247 ONDNIKE AIR FORCE 1 FOAMPOSITE CUP AH6771 001 TRIPLE BLACK HIGH STRAP multi sizes , Nike Air Max Baking Boots ACG GS Black Size 7Y With Box 415116002 , MEN'S SHOES SNEAKERS NIKE ROSHE TIEMPO VI FC [852613 400]Nike Air Max Flair Shoes White / Pure Platinum Size 9 MENS (942236-100) $160New Nike Mayfly Leather PRM Premium Off White Low Top Shoes 816548 100 - Size 8 , NIke Kobe XI Dark Knight Basketball Shoes Black/Gray Men's Size 7.5 836183-001 , Pre-Owned Nike Air Force 1 Black Suede University Blue 2006 Size 13 313642 005 , 2008 NIKE BLAZER MID PREMIUM GREY VIOLET/WHITE BLACK 317435 511 DQM air size 8.5 , PRADA Black Leather & Mesh PUNTA ALA LOW SNEAKERS SHOES Casual Oxford 9.5/10.5US , adidas PureBOOST Shoes Black Men BB6280Men's/Women's JORDAN RETRO Good design Optimal price Very practicalADIDAS AMERICANA Flavors of the World SANJA MATSURI Black Purple Gold Size 9.5 , MENS NIKE PRE MONTRAL RACER 476717 400 US SZ 8.5 RUNNING SHOES BLUE RED WHITENew Nike Air Jordan 3 XXX Black Cat Men's Size 10.5 Anthracite/Black 811006-010Nike Air Huarache Thunder Blue/Obsidian-Obsidian (318429 416) , Nike Roshe Run Flyknit Multicolor Multi Rosherun Random Black SZ 10 NikeiD IDAdidas Men's Originals EQT Support Mid ADV PK Primeknit Boost Shoes Green B37436 ,
    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07 - blurrypron.com>342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07 - blurrypron.com
    Cole Haan Womens W00269 Elion Boot 10- Choose SZ/Color.Swedish Hasbeens Plateau Platform Super High Black Leather Boots $349 , Man/Woman Vans Ultrarange Pro Black/White Fine workmanship Clearance Known for its excellent quality , New Balance WL574TBO B 574 Ricardo Seco Black White Women Shoes WL574TBOB , PUMA Women's Basket Heart Nylon Wn Sneaker , Brighton 'Diane' Loafers Black Brown Leather 7.5M Made In ItalyJ Crew Lot Brown Leather Camel Suede Tassel Kitten Heels Shoes Italy 7Womens High Heels Chunky Hollow Cut Peep Toe Buckle Pumps Sandals Prom Shoes , J. Renee Rylee Belly Snake Print Dress Shoes, Size 11M Church Special Occasion , Womens Birkenstocks size 38 US Size 7 Pink Red Sandals , Kelsi Dagger Glori wedge sandals leather snake sz 6 Med NEW , Rara Avis by Iris Apfel Mongolian Fur Booties Aqua Blue Size XLarge (11-12) NIPRYKA Ryka Womens Grafik Flow Cross Trainer- Pick SZ/Color.New adidas Running Madoru 2 Women's Training Running Shoes AF5375 Size 9.5 , Under Armour Running Shoes Mens 17 Blue Psychedelic Charged Bandit 2 1288308-987 , Asics California 78 Monaco Blue/Slight White D5C0Q 5399 Men'sVANS TH SK8 MID SKOOL LX TAKA HAYASHI LEATHER LIGHT GRAY WHITE VN-0XJJDU3 DS 8.5 , New Teva Men's Terra-Float Travel Knit Sandal - Size 9 -Navy -Spring 2018! , Sperry Gold Sport 2 Eye ASV Boat Shoes - Men's Size 10 M, Navy , Genuine Leather Mens Slip On Loafters Rivets Vintage Shoes Nightclub Casual @Chic Mens Slip on Loafers Dress Business party new buckle Classic Shoes LeatherAllen Edmonds Strandmok Oxford - Black- Size 9.5 ENike Womens Free RN 2017 Running Shoes 880840 003 Multiple Sizes New , ASICS Womens Gel-Resolution 7 Tennis Shoe - Choose SZ/Color , Authentic BROOKS Womens Adrenaline GTS 16 RUNNER (B) (006)Galliano White Leather Studded Hi Tops/ Sneakers!Nike Air Huarache City Womens Style : Ah6787 Black/Black/Dark Grey Size 12.5Womens Rivet Over Knee High Boots Pleated Stiletto High Heels Shoes High BootsWomens Low Heel Round Toe Wedge Ankle Boots Cross Strap Side Zip Buckle ShoesMan/Woman Fergalicious Women's Lexy Western Boot selling price online shop business
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07 - 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.

    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07 - 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
    342964-405 Jordan 29146 Men Obsidian Jordan True Flight Obsidian Ocean Flight Fog 1fb3f07
    Athletic Shoes
    >
    ;