Never miss an update

MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9




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
Color: Black
Brand: Puma Style: Athletic Sneakers
Never miss an update

MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9 - blurrypron.com

    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9
    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9
    Adidas James Harden Vol.1 LS Primeknit Boost Basketball Shoe Black White OreoNike Air Jordan Ol' School Midnight Navy/White-Black 317223-401 Men's SZ 10ADIDAS NMD RACER PK SZ 8.5 SOLAR PINK CORE BLACK NEON PRIMEKNIT CQ2442 , NIKE MAGISTA OBRA II FG SOCCER CLEATS SIZE US 6 GREEN 844595-376NIKE AIR ZOOM TALARIA '16 SP 844695 401 SOAR/VIVID SULFUR YELLOW-DEEP ROYAL BLUEadidas Originals Campus Pride Cream White/Trace Pink/Trace Scarlet Suede AdultNike SB Hyperfeel Koston 3.. Red/ Black..Size Men 8.5 or Women 10..Fast Shippingnike SB stefan janoski max mens trainers 631303 008 sneakers shoesAsics GT 1000 6 Mens Running Shoes (4E) (9090) + Free Aus Delivery | BUY NOW! , Brooks Ghost 6 Mens Running Shoes (D) (292) RRP $200.00 + Free Aus DeliveryUnder Armour Curry 2 -1259007-103 Birthday Surprise Party Cake UA Size 16 New , nike roshe NM flyknit PRM mens running trainers 746825 400 sneakers shoesNike Air Jordan Retro 1 High Black Metallic Red Bronze Shoe 332550-016 Mens 11Ted Baker Sarpio Mens Dark Red Textile & Suede Trainers , Nike Zoom KD IX 9 Flyknit UNLIMITED Multi Black Green Durant 843392 999 Size 10 , Man's/Woman's Gant Men's Major Suede Trainers, Brown Excellent craft New design Global salesadidas Originals N-5923 Iniki Runner Black White Men Running Shoe Sneaker B37957MEN'S SHOES SNEAKERS ADIDAS GLENBUCK SPZL SPEZIAL [DA8759]Puma 189937 01 Speed Ignite Netfit Toreador Men's Running Shoes 10 US , Nike Air Footscape NM Hyper Cobalt/Black 852629-400 Men's SZ 8.5 , Salomon Outpath GTX Gore-Tex Hiking Outdoor Shoes Lime Punch Sample ( 394490 ) , NIKE AIR FORCE 1 MID PREMIUM ID Chocolate Brown/Black Men’s Sz 12 (AJ4764-993) , Nike Air Max 270 Men's Sepia Running Sport Shoes Shock Absorption Non-slip Size , New UNDER ARMOUR SC 3ZERO II - MEN'S Stephen Curry Shoes Charcoal/Black c1NIKE KYRIE IRVING 1 "USA INDEPENDENCE DAY"..MEN 7 or WOMEN 8.5.. SHIPS FAST!New Reebok Men's Size 12 Ultra Circuit TR ULTK LM Black/White Sneakers CN5947NIKE AIR HUARACHE RUN ULTRA SE 875841 200 MOON PARTICLE GREY/MICRO STRIPES , Nike Zoom Penny VI Men's Basketball Shoes University Red/Black-White 749629-600NEW Nike Flyknit Racer MULTICOLOR 3.0 RAINBOW 526628-004 sz 7.5 Men / 9 Women ,
    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9 - blurrypron.com>MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9 - blurrypron.com
    Womens Pointy Toe Stilettos High Heels Synthetic Leather Knee High Boots Size , PLEASER Legend-8868 Series 4" Heel Sexy Exotic Thigh-High Boots , HADES FALINE Brown Black Green Steampunk Gothic Chains Spikes Ankle Calf BootsNWB PRADA BLACK SUEDE FLAT ZIP BOOTIE 36.5Lotto shoes zero gravity vii 700 tf junior r8279 soccer boy , Dr. Brinkmann 600389 Clog Male Clogs Nappa Leather Marron Brown , G.H. Bass & Co. Harlow Pointed Toe Loafers, MochaWomen's Platform Wedge Heels Shoes Buckle Round toe Princess Lolita Pump CuteJiki Monte Carlo womens shoes sz 9M/Black bejewel ankle strap canvas solid , Donald Pliner Metallic Leather Boot Shoe New Satin Elastic Sling Signature $345crocs 205150 Crocs Womens Isabella Cut Grph Strappy SNDL Flat SandalZara Women Sandals with vinyl strap detail 1348/301/002 , Gentleman/Lady Flat Keen Sienna MJ Canvas Magnet/Black Crazy price, Birmingham auction Known for its beautiful quality , Reebok Size 10 Red Memory Foam Insoles Sneakers New Womens Shoes , Nike Train Speed 4 AMP Alabama Shoes Crimson Tide Week Zero SZ 14 ( 844102-602 ) , New In Box Hugo Boss Logo Shoes Sneakers Men Akeen Dark Blue 7 $245 , New asics Running Shoes GELFEATHER GLIDE 4 TJR455 Freeshipping!! , NIKE AIR JORDAN 11 GAMMA BLUE US Legit 378037-006 2013Nike Air Max Goadome Premium 2013 Men's Boots Baroque Brown-Bamboo 616540-222 , Men Vlado Footwear Shoes Mogul Fashion Black Size 12 , SAS Guardian Black 11 WW Men's Shoes NewUSED Allen Edmonds Men’s Size 10 Brown Dress Shoes Silver Buckle , New Under Armour Women's Micro G Pursuit Running Shoes - Size 12 - White / BlackBROOKS PUREGRIT 5 TRAIL RUNNING SHOES WOMEN'S 9 B RTL $120 , Women's Nike Zoom All Out Flyknit Shoe, Size 6.5 , Nike Air Zoom Mariah Flyknit Racer AA0521 301 Cargo Khaki Bottom Women 5 - 12Salomon Speedcross Pro Women's Trail Running Shoes - SS17-7.5 - Purple , Adidas Flb_runner W Womens CQ1969 TRASCA,White,TRASCA Womens Size 7.5 , Embroidered Snow Boots Wmen Winter Shoes Side Zip Round Toe Plush Lined Shoes , Lust For Life Oasis Black Leather Silver Metal Chain detail Combat Biker Boot
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9 - 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.

    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9 - 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
    MEN'S SHOES SNEAKERS PUMA TSUGI TSUGI APEX [366432 EVOKNIT 29770 [366432 01] eb0e2f9
    Athletic Shoes
    >
    ;