Never miss an update

New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d




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
Pattern: Solid
Style: Hiking, Trail Color: Gray
Material: Suede Product Line: Gore-Tex
Country/Region of Manufacture: United States Width: Medium (D, M)
Model: Miobium Brand: New Balance
MPN: MLNBDCC
Never miss an update

New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d - blurrypron.com

    New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d
    New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d
    Adidas Neo Raleigh 9tis MID Men's Basketball Shoes AW5407 Black White Size 7 , Nike Air Huarache Drift sz 10.5 aH7334 102 retro running shoes max 95 97New Balance 574 Classics Sneakers Men’s Size 11 ML574ESC Navy/White/ Red , Saucony Jazz Low Pro Vegan Size 14 Men's Charcoal Orange Running Shoes Sneakers , Under Armour Yard Mid ST Men's Black Gray & White Baseball Cleat ShoesMen's Nike Kobe 11 XI TB Promo Basketball Shoes Lakers Purple White Silver Sz 16Adidas CLIMACOOL BOAT PURE New Mens Water Shoes Coral Dive Surf Sea AQ5274 , Vans Rowley X Men's Size 8.5 Vault Supreme Vintage NEWNike Men's Air Max TR 365 Black/Black/Vivid Blue UNC Carolina sz 11.5 11 1/2Nike Pantheos Men White Kinetik Green New Shoes Fast Shipping 916776-101 , Nike Lebron James Zoom Air Soldier 7 Running Basketball Shoes Men's Size 10.5 , Nike Shox Gravity Men's Running Shoes AR1999 402 Obsidian Navy Blue SZ 9.5 , Man/Woman Nike Flex Brs Men's Shoes Clever and practical low cost Excellent workmanshipAdidas Men's Originals Campus BZ0085 Grey/White Sneaker Shoes Size 10 NEWNike Men's Dunk Cmft Prm Casual ShoeAsics SNAPDOWN 2 Men's J703Y.9090 Black/Carbon Wrestling Shoes , Converse CTAS Prime HI TOP LEATHER SHOES SIZE MENS 10 $135 154837C , Nike Air Max Torch 3 Running Shoes Black White Silver 319116-011 Men's NEW , Nike Air Jordan Spike Forty Low GG Hi Top Trainers 833487 009 Sneakers CLEARANCEAdidas Men Athletic Shoes D Lillard 2 Vets Day Basketball Shoes Core BlackNew Balance Men's MW1500v4 M1500BY4 Maldives Blue-Black-Flame-Impulse , Nike Air Zoom Rival 5 Mens Golf Shoes 878957 400 Trainers SneakersConverse Chuck Taylor All Star 70's Ox Vintage Suede Mens Trainers New On SaleNike Train Ultrafast Flyknit Mens Black White Oreo 843694 002 Shoes Training NIBNike Son Of Force Mens Trainers 616775 Sneakers Shoes 005Vans Slip On BMX Classic Checkerboard Slip-On Black Red White Size 8-13Converse Chuck Taylor All Star Descent Ox Mens Shoes size 9 153684C BlackMENS DC SYNTAX SKATEBOARDING SHOES NIB BLACK GREY (BLG)Nike Air Zoom Mariah Flyknit Racer White Hyper Crimson Men Running Size 10.5 Men ,
    New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d - blurrypron.com>New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d - blurrypron.com
    Frye Melissa Button Tall Size 5.5 Black Boots Womens MSRP $368 , VIA SPIGA Beline Boots Black Leather Tall Over The Knee Block Heel SZ 6 NEW $595New NICHOLAS KIRKWOOD Printed Satin & Patent Leather Slingbacks Sz 39.5 - $850 - , Cole Haan Women Studiogrand Embossed Floral Sneakers Shoes Leather Gray BlackBirkenstock Arran Casual Shoes - Women's Size 10/10.5, Basic RedMr/Ms MANOLO BLAHNIK $795 YELLOW SUEDE OXFORDS Easy to clean surface Low price Modern and elegantELIE TAHARI Womens Ithaca •Black• High Heel Stretch Caged Sandals , Punk Womens Gladiator Hollow knee High Boots Sandals Mid Block Heels Shoes US szNew Women summer Flip Flop Sandals Wedge Heel High Platform Slippers Shoes , Cole Haan Women's Anica Slide Sandal - Choose SZ/ColorRED VALENTINO WOMEN THONG SANDAL FLAT OPEN TOE WITH BOW RED LEATHER SIZE 37 , Nike Air Jordan Retro Dub Zero Teal Green/Blue Graphite Shoes!!! 11!!! , MENS ETNIES MARANA X HAPPY HOUR MICHELIN JOSLIN SKATEBOARDING SHOES WHITE GUMADIDAS ORIGINALS X NEIGHBORHOOD CAMPUS MID SZ 6.5 LIGHT GRANITE NH CP B26085 , AIR JORDAN 11 RETRO XI TD CLEATS SZ 8 CONCORD WHITE BLACK AO1561 123adidas Women's W Response Bounce Golf Shoe - Choose SZ/ColorDriving Shoes Loafers Gommino Low-top British Mens Casual Slip On Board Shoes , Vintage Chic Mens Casual Gommino Loafers Moccasins Driving Shoes Flats BritishEncore Fiesso Men's Blue Fashion High Top Sneakers with Spikes Size 13P-354220 New Bally Eroy Gold Polyester Shiny High Top US 8 Marked 41 , Men Pointed Toe Leather Business Dress Formal Wedding Shoes Stripe Chic Boot New , Converse Chuck Taylor All Star Charcoal White Ox Lo Unisex Trainers ShoesReebok Classic Leather Ps Pastel Womens Lavender Leather Trainers , Man/Woman Spring Step Black-Nubuck Slip-On Women's Shoes Outstanding features comfortability VariousWMNS AIR FORCE 1 HI SE BLACK-BLACK-DARK GREY SZ 9 [860544-002]Nike Air Force 1 '07 Prem Glaze Basket Womens 616725-008 Matte Silver Shoes Sz 8Demonia Huge 3" Black Bow Skeleton Hand Creepers Punk Goth Mod Womens 6-11THE NORTH FACE WOMEN'S SIZE 7 THERMOBALL UTILITY MID BOOTS GARNET RED / CORALBCBGeneration Womens Elle Open Toe Ankle Fashion Boots, Brick, Size 6.5Fontana 2.0 Women's Suede Ankle Boots Black Leather Elastic Side Band
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d - 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 mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d - 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 mogochinese-29438 Balance Mens Niobium High-Top Sneaker Niobium Boot Boot Shoes Gore-Tex Grey SZ (MLNBDCC) d11610d
    Athletic Shoes
    >
    ;