Never miss an update

Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8




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: NIKE
Style: 942855 004 Color: Phantom/Gunsmoke/Summit White
Never miss an update

Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8 - blurrypron.com

    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8
    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8
    1711 Nike Air Zoom Pegasus 34 Shield Women's Training Running Shoes 907328-002 , Dansko Women's Sam Closed Toe Sandal Teak Vintage Pull Up Leather , Nike Air Vapormax GS BG Black Grey Orange Punch Juniors Boys Girls TrainersKeen Women's Terradora Hiking Shoe Neutral Gray/GargoyleNike Free FlyKnit+ Women's Dark Grey/White/Wolf Grey/Pink Foil 15806016 , Skechers Go Run Ultra R 2 [15050BURG] Women Running Shoes Burgundy/Red , Asics Gel Nimbus 18 Womens Running Runner Shoe (B) (7620)Dansko Women's Professional Clog Antique Brown Oiled/BlackMEN'S NIKE FREE RN COMMUTER 17 TEAM RED RUNNING SHOES MEN'S SELECT YOUR SIZE , adidas Originals Arkyn Runner Women's Black/Trace Maroon/Mystery Ruby D97090 , MEN'S REEBOK FLOATRIDE RUN 6000 BLACK/WH/RED CASUAL SHOES MEN'S SELECT YOUR SIZELucky Brand Women's Baley Bootie Dark Olive Suede Ankle BootsKenneth Cole New York Women's Kathy Slip-On Sneaker Rose Gold Leather SneakersLacoste Women's L.12.12 Sneaker Navy Textile SneakersWMNS NIKE ODYSSEY REACT WOLF GREY RUNNING WMN'S SELECT YOUR SIZE , Alegria by PG Lite Women's Keli Pro Clog Black Nappa LeatherSaucony Ride ISO - Women's Blue/Navy/Purple 104441Saucony Women's Peregrine 7 Trail Shoe Grey/Berry Sneakers , Nike Air Zoom Fearless Flyknit 2 Women's Particle Beige/White/Guava Ice 1214200ADIDAS ULTRA BOOST UNCAGED CLEAR GREY / MID GREY S80689 BRAND NEW UK SIZE 5 , Chiara Ferragni white leather sneakers red glitter hearts Size US 6 -Gentleman/Lady Blu Byblos Ladies Sneakers Selling buy Selling new productsMan's/Woman's NIKE AIR ROSHE ONE Special purchase Price reduction renewed on timeNike Wmns Air Max 97 Phantom Beach Sand Womens Running Shoes Sneakers 921733-007Asics Gel-Kayano 25 Orange Fuchsia Womens Running Shoes Runner 1012A02-6800NEW BALANCE 574 DAYBREAK / OVERCAST CASUAL WOMEN'S SELECT YOUR SIZE , Vionic with Orthaheel Technology Midi Perforated Slip-On Sneaker Dusk Leather , Gentleman/Lady London Fog Women's Lauren Black Queensland a wide range of products Fair priceWomen's Nike Odyssey React Running Shoes Light Silver/Sail/Mica Green AO9820 009 ,
    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8 - blurrypron.com>Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8 - blurrypron.com
    Balenciaga Black Suede Lug Sole Platform Ankle Boots SZ 37.5NEW Authentic BURBERRY Doodle Print Rubber Rain Boots Military Green , NIB Givenchy Red Leather Shark Tooth Lock Foldover Wedge Heel Bootie Boots 37.5DEWALT - Apprentice Hiker Boots Brown Nubuck Euro 46 - , Bar III Womens Night Closed Toe Over Knee Fashion Boots , Nina Gaelen Strappy Block Heel Sandals, Soft Platinum, 7 USNina Womens Corita Open Toe D-orsay Pumps Beige Size 6.5 N80oMANOLO BLAHNIK Black Pointed Toe Pumps W Self Tie Ankle Strap Size 39.5 B4433NIB BURBERRY Platfrom LEEHAM Wedge Espadrille Sandals Shoe House Check 40 - 10 , Lauren Ralph Lauren Roseanne Wedge T Strap Sandals, Geranium, 7.5 US / 38.5 EUNike Hyperdunk TB Gym 584433-600 Red White Basketball Shoes Men's 17 New , Brooks Men’s Chariot Running Shoes Sz. 10 NEW 1201711B423.Adidas Aerobounce 2 Running Shoes AQ0534 Men Size 10 New! , Nike Roshe NM Flyknit Men's Shoes University Red/White 677243-603 , Real Mens Pointed Toe Side Zip Ankel Boots Leather Carved Combat Shoes Retro SzMephisto Men's Baduard Suede & Leather Slip On Loafers Black Shoes Size 13 U.S. , Stacy Adams Men's Barnes Moc Toe Bit Loafer White Leather Dress Shoes 20172-100P-323129 New Tods Gommini Yellow Suede Driving Shoe Size US 8 Marked 41 , Sh Mens Slip on Loafers Pointy toe British Alligator Dress Formal Fashion shoesVibram FiveFingers KSO Evo Women's Running Shoes - 41 (US Women's 9-9.5) B - ...Adidas Originals X Pharrell Superstar Supercolor Clear Sky Blue SIZESNEW VANS x Liberty Alice in Wonderland Low Top Sneakers Yellow *RARE PRINT* 6.5Ariat Women's Radcot Wellington Boot Realtree® Edge RubberWomens Asolo Blue Gray GTX GoreTex Hiking Boots Size 9 Waterproof (b14) , Sesy Red Womens Pointy Toe Rhinestones Block Heels Suede Zipper Ankle Boots Chic , Vasque Womens Monolith Ultradry Athletic Support Hiking Trail Mid Boots Sz 10.5Gentleman/Lady NEW PELLEDOCA WOMENS BOOTIE Clearance price Good market Famous storeWOMENS RED WING IRISH SETTER WORK ULTA DRY WATERPROOF STEEL TOE EH BOOTS SZ 8 , Laredo Madison Red Burnished Womens Boots NWT 8BSkechers Women's YOU Inspire Slip-on Shoe - Choose SZ/color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8 - 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.

    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8 - 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
    Womens White Nike Air Zoom Womens Pegasus 35 Running Phantom Pegasus/Gunsmoke/Summit White 942855 004 6ee3ec8
    Athletic Shoes
    >
    ;