Never miss an update

DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07




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
Modified Item: No
US Shoe Size (Men's): 10 Style: Basketball Shoes
Shoe Height: High Top Product Line: The Pump
Upper Material: Leather Width: Medium (D, M)
Color: White Pattern: Retro
Euro Size: EUR 43 Material: Leather
Brand: Reebok Features: Retro
UPC: 884560897399
Never miss an update

DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07 - blurrypron.com

    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07
    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07
    Air Jordan 2 Retro 01/28/14 385475 303 NGHTSHD/VLT IC-BLCK-PR PLTNM 2018 , Adidas Ultra Boost 3.0 CNY Chinese New Year BB3521 rare size 8Gentleman/Lady jordan spizike Elegant appearance Lush design cheap price , Men's New Air Jordan 9 Retro "Bred" Athletic Fashion Sneakers without box , Men's/Women's Jordan Spizike - 315371 002 Great variety Various types and styles Valuable boutique , VINTAGE 2006 - NIKE CONSIDERED AZONA, MOWABB, ACG - T43//US 9,5 - NEUVES , Adidas Ace 16+ Kith UltraBoost - CM7890Nike Air Vapormax 95 Neon Mens AJ7292-001 Black Volt Ash Running Shoes Size 11New Balance M990GLE4 Running Shoes Gray Mens FS US9 UK8.5 EU42.7 NOS MintMen's/Women's asics Tiger from japan (6255 Complete specification range a variety of Elegant and robust menuMan's/Woman's Joran Retro 4 Military Blue Elegant and sturdy set meal Fast delivery comfortableNike Air Jordan Horizon Premium PSNY 09/01/2015 BLACK/WHITE-PR PLTNM-ANTHRCT , Air Jordan 18 Retro - AA2494 601 , Adidas Yeezy Boost 350 V2 Butter Limited Edition Rare New Sz 4,5,9 Kanye WestMen's/Women's jordan collezione 16/7 superior Medium cost The first batch of customers' comprehensive specificationsNIKE AIR KD V (AUNT PEARL) (Size 8) , Air Jordan 13 XIII Retro Bred Mens 414571-004 Black True Red Shoes Size 11 , Gentlemen/Ladies Hogan HXM2460S47099KC781G sneaker Men's Black US Elegant and sturdy set meal Environmentally friendly Various , Man's/Woman's Hogan HXM2460S26099FY058V sneaker Men's Black US Exquisite (middle) workmanship Win the praise of customers Superb craftsmanship1805 adidas NEMEZIZ 17.1 Men's FG Soccer Cleats Football Shoes CP8935 , Adidas Yeezy Boost 500 Supermoon Yellow Size 8.5 1000% Authentic , New Moncler 'JOACHIM' Mr.Moncler trainers - Black/White - RRPVANS OLDSKOOL DX ZIP [27cm] Vans Old School Blue from japan (4399 , Nike Dunk High SB BLACK SHEEP PAID IN FULL 313171 170 US10,5 EU44,5Man/Woman Hogan HXM2460Q26199M5742L sneaker Men's Multicolor US Beautiful design Online export store Popular recommendation , Man's/Woman's Hogan HXM2460Q25199G0B999 sneaker Men's Black US Wear resistant Sales Italy Modern and elegant , Nike Mercurial Vapor 12 Elite NJR FG Men's Soccer Cleats Shoes AO3126-710 1806Man/Woman Puma Thunder sneakers from japan (4127 Reputation first Settlement Price Great choice , NIKE WMNS AIR HUARACHE RUN Harachi from japan (5779 ,
    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07 - blurrypron.com>DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07 - blurrypron.com
    Nike Air Max 97 Men's Shoes Sneakers Premium Sneakers Leisure New TopHOGAN women shoes Interactive Lycra Fuchsia pink suede scuba fabric sneakerMerrell Mens All Out Blaze Sieve Convertible Adjustable Sandals , Ladies Shoes Leather Sandals Borelli Janet Black or Tan TBar Buckle Up Size 7-9 , Hogan HXW2040G990OOW0B999 Décolleté Shoes Women's Black AUJohnston & Murphy Maggie Firebird Orange Camp Moc Moccasin LoaferSarto by Franco Sarto Women's Palomino Slide Sandal Milk Hispacho Leather Slides , Antonio Melani Fresch Shootie Brown Smooth+Alligator Print leather 9.5M Side Zip , BEAUTY&YOUTH UNITED ARROWS Shoes 527028 Black 36 1/2 , TORY BURCH salmon snake pattern leather pumps / heels sz. 9.5 M $225Jessica Simpson Women's millo Dress Pump - Choose SZ/ColorCrocs Crocband Unisex Clogs CrosLite Blazing Orange/Slate Grey OrangeREEBOK ZOKU RUNNER ULTRAKNIT - FREEBANDZ - BLACK/WHITE BD5852 , NIKE MENS ALL COURT CK QS SIZE-11.5 COLOR-BLACK/WHITE (NIB)ADIDAS CRAZY 8 PK ADV SZ 10 COLLEGIATE BURGUNDY RED WHITE PRIMEKNIT BY4366 , NEW in BOX NIKE SWOOSH HNTR HUNTER WHITE SNEAKERS High Tops 832820-101 SZ 10.5 , adidas Golf Mens AdipowerBoost 3 Ftwwht Shoe- Pick SZ/Color.AIR JORDAN 1 GATORADE ORANGE PEEL Men's [AJ5997-880] & GS [AJ6000-880] SHIPS NOWAdidas x Pusha T Eqt Boost Support Ultra Pk 10.5 , [bargain] Asics Lethal Speed Flash IT Mens Football Boots (0190)El General Men's Cowboy Boots White Leather & Black Imitation Caiman Tail Size 6England Style Men's Flat Shoes Leather Loafers Casual Slip Ons Driving MoccasinsHOGAN REBEL R141 MAN SNEAKER SHOES CASUAL FREE TIME CODE HXM141072824R1754L , BX520 CESARE MAURIZI shoes brown leather men elegantNew UNDER ARMOUR White Micro G Press Training Shoe Womens Sz 11 (US) RETAIL $174ALDEN Brown Leather Dress Shoes, US 11adidas Flashback Pk - Grey - WomensT.U.K. A8522 Tuk Shoes Mondo Hi Sole Black White Polka Dot USA Womens 8- Men 6adidas Originals BB6114 Womens Energy Cloud V Running Shoe- Choose SZ/Color. , Finn Women's Soft Charlotte Leather Casual Sneakers Smog Jasmin 82766-901163
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07 - 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.

    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07 - 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
    DS New w 29989/Box New Reebok Twilight sz Zone The Pump White/Neon Yellow/Black sz 10 Rare 2eb1b07
    Athletic Shoes
    >
    ;