Never miss an update

Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945




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: Reebok
Style: 003323|V44410
Never miss an update

Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945 - blurrypron.com

    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945
    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945
    Air jordan 6 Sport Blue sz 10.5 Brand New DS NIB FAST SHIPPING COLUMBIA , NIKE AIR JORDAN 10 RETRO SUMMIT WHITE-SUMMIT WHITE SZ 11.5 [310805-104] , JORDAN SHINE PREMIUM MEN SZ 13.0 BLACK NEW AUTHENTIC RETAILS $400 HERE FOR LESS , Nike Air Max 270 AH8050-104 Men's Sizes US 7 ~ 15 / Brand New in Box! , Man's/Woman's adidas ultraboost packer/solebox size 13 new Strong heat and wear resistance Latest styles Cheap orderadidas C . P . Company tobacco 7,9.5 uk vintage rare consortium BD7959 , AIR JORDAN 11 XI RETRO CLOSING CEREMONY WHITE/ METALLIC GOLD 528895-103 Sz 10.5 , Adidas NMD_R1 “White Blue Cyan” Men's Trainer "All Sizes" (S31511) , Nike Air Vapormax Flyknit Moc Mens AH3397-013 Midnight Fog Running Shoes Size 11Nike Air Max 2017 <849559-601> Men's Sizes US 8 ~ 15 / Brand New in Box!Converse One Star Ox Golf Wang Tyler The Creator Limited Size 9.5 Brand New2013 Asics Gel Saga Cottonmouth H32AQ 3601 Size 8LEBRON 11 'EVERGLADES' - 616175-006 - SIZE 9 , Vans Authentic retro flag from japan (578AIR JORDAN 13 XIII RETRO CP PE CHRIS PAUL BLACK SUN ORION BLUE 823902‌-‌015 Sz10 , Nike Air Max 2016 Men's Deep Royal Blue/Racer Blue/Photo Blue/Black 06771401 , Nike Air Jordan XIV 14 Retro WOLF COOL GREY SPORT BLUE WHITE 487471-004 NEW 12100% authentic Adidas Y3 Yohji Yamamoto shoes/sneakers, size US 10.5RARE VINTAGE Dash-A 1980'S MADE IN Korea RUNNING SHOES sz 10 original suede , NIKE Air Jordan 1 Mid 28cm US10 regular article! from japan (4236 , Nike Lebron 15 City Series Free Shipping , Man/Woman Adidas Ultraboost J - S80588 Diverse new design New design Acknowledgement feedbackAir Jordan 6 Spiz'ike "History Of Jordan" - 694091 6251808 Nike Mercurial Vapor 360 Elite Men's FG Soccer Cleats Shoes AH7380-060 , BB1967 Adidas Originals NMD XR1 PK Primeknit Triple White Boost Limited New Men , NIKE Air Vapormax '97 (gs) Big Kids Aq2657-002 Size 6 , Brand-new Nike Air Jordan Retro 10 310805 102 Red/Black/White Basketball SupremeNEW Air Jordan RETRO 10 “ DOUBLE NICKEL ” Men's 100% Authentic , NIKE AIR JORDAN 10 RETRO SUMMIT WHITE-SUMMIT WHITE SZ 9.5 [310805-104]
    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945 - blurrypron.com>Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945 - blurrypron.com
    Pikolinos Womens Pikolinos W9H-8800 Zaragoza Leather Round Toe, Moss, Size 5.0 , Geox D643EA Womens Wamintaabx1 Ankle Bootie /- Choose SZ/Color.[bargain] Brooks Maximus XT 8 Mens Crosstrainer (Mesh) (D) (903) | RRP $180.00 , TS shoes TAKING SHAPE sz 37/ 6 Jennifer Ankle Boots red nappa leather NIB rp$200Man/Woman Marina Black Paul Green Loafer Flat Beautiful color International choice Preferred boutique , Born Madrea W21280 Tan Slip-on Loafers Buckle Flats Leather Women's US 9.52018 Womens Autumn New Zip Single Shoes Fashion Metal Buckle Pointed Block HeelsAnn Creek Women's 'Caney' Rhinestone Pump Heels , Pleaser - VANITY-442 Womens Vanity-442 Marry Jane Pump- Choose SZ/Color. , Tongs model 27870 Heppin - Matter - ShoesSESTO MEUCCI Silver Gray Suede Sandals 40 Comfort ShoesAerosoles STARDOM Womens Stardom Dress Pump- Choose SZ/Color.Nike Zoom HJ Elite High Jump Track Spikes Volt Pink Black RIO SZ ( 806561-999 ) , MEN NIKE STUTTER STEP 2 BASKETBALL SHOE SIZE 10 , DC Lynx Lite Ken Block Black Leather Skate Athletic Shoes Size 12.5Etnies Jameson 2 Eco Men's Denim Blue Recycled Low-top Vegan Skate Trainers NewMen's Nike Metcon 2 Trainer Sz 12 Crimson Blue White 819899-841 FREE SHIPPING , Under Armour UA Speedform Fortis 2 [1273942-008] Running Grey/Yellow , 1996 DEADSTOCK Columbia 11 Toddler 10C , Wolverine Work Boots Men's Size 9.5M Leather Waterproof Composite Toe Black NewHunter Men's Original Tall Rain Boots Black Size 11 , Merrell Encore Bypass Slip-On Shoes Men's - Black J66235NEW Altra Zero Drop Women's ‘Eve’ Minimalist Running Shoe Fits like 8 Sz 8.5 , Skechers 11860 Sport Womens DLites Life Saver Fashion Sneaker- Choose SZ/Color.Nike Womens Kaishi Winter High Sneakerboot Shoes Black , WOMENS SAUCONY JAZZ 20 LADIES RUNNING/SNEAKERS/FITNESS/TRAINING/RUNNERS SHOESMarc Jacobs Rain Boots AUTHENTIC Hunter Mark Heel Shoes Flats Wedges HeelsWomens winter Leather Pointy Toe Mid Calf Boots Wedge High Heel Zip Shoes New Sz , Womens Casual Leisure rhinestone Stilettos Sexy Night Club Ankle Boots Shoes New , Merrell Women's Bare Access Flex Trail Runner, - Choose SZ/color ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945 - 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.

    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945 - 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
    Man/Woman fashion elegant Reebok Kamikaze II thenewsmeis-969 MID - V44410 Modern and elegant fashion buy Speed ​​refund d96a945
    Athletic Shoes
    >
    ;