Never miss an update

Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230




Never miss an update

Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230 - blurrypron.com

    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230
    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230
    Burberry womans black high heel satin shoes , Stuart Weitzman Takeabow Ankle Strap Pumps, Black, 9 USFly London Women s YOND771FLY Closed-Toe Heels, Silver Anthracitesilver Black , , Pleaser Black Patent Pole Dancer Fetish Gothic Platform 7" Ankle Boots Size 5-14Pleaser Shoes Sexy Exotic Pole Dancer Black 7" Rhinestone Platform Heel MulesMen/Women BROGUE-06 Black Every item described is available Attractive fashion Don't worry when shopping , Nina Armando Lola – Champagne Stiletto HeelsNina Armando Emma - Navy Mid Low HeelsGentleman/Lady alexander mcqueen open toe pump stilleto’s Every item described is available First batch of customers Exquisite (processing) processingNina Armando Anthea – Ash Grey Mid Low HeelsJerome C. Rousseau Cannelle Studs Pumps 404, Black Suede, 6 US / 36 EUMan's/Woman's Reiss Snakeskin Heels Stilettos Size 39 High quality and low overhead Elegant style Exquisite processingMan's/Woman's TORMENT-713 Black main category special promotion Elegant and stable packagingNina Armando Susan – Black & Floral High HeelsBadgley Mischka Amber Platform Flower Pumps 170, White, 5.5 US , Alexander Wang Simona Size 39 Orange Suede Block Heel As New Mint Condition , MIMCO Tan Size 39 In Original BoxWoman's Nike shoes with Swarovski crystals, white, clear & pink crystals size 8!Men/Women GRAVEDIGGER-03 Black Economical and practical Cheaper than the price Elegant and robust menu , Nina Armando Siena – Yellow Wedge Heels , Nina Armando Florence - Navy High HeelsNina Armando Loy - Off White Mid Low HeelsMARCO TOZZI Women's Pumps 222250528241, Light Grey AnticStuarty Weitzman Pipemidondas Pointed Toe Heels 014, Serval, 9 US , Womens size 8 heels light grey snake skin buckle , Stuart Weitzman Fringelica Fringe Ankle Strap, Currant Sage, 5 US Display , Man's/Woman's FLAMINGO-808LG Clear Glitter Silver wholesale Low price Good qualityNina Armando Luciana – Navy & Snakeskin Mid Low Heelssublime court shoes Christian Louboutin so Kate 2018 brandnews NUDE t 37
    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230 - blurrypron.com>Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230 - blurrypron.com
    COLE HAAN Leather Ankle Boots, slate gray, size 8NIB Sperry Women’s Saltwater Wedge Acadia Duck Boots Oat 5M , Corral Urban Women's Multi Buckle Straps Distressed Black Leather Ankle... , Versace Versus Women's Black Suede Leather Ankle Boots Shoes US 7 IT 37BTS PUMA Basket Patent Made by BTS [Limited Edition]Talbots Navy Blue Leather Flat Wedge Strappy Womens Sandals Size 6.5 ShoeTrippen "China" 39 8.5 Cup Brown Leather Ankle Tie Flats Shoes Germany , Gentlemen/Ladies MUSTANG Sneakers 1246303 Rose Complete specification range a wide range of products Preferential priceCrocs Size 6 Gray Slip On New Womens ShoesWomen's Shoes Size 41(10) Barney's New York Suede Upper/Leather Sole-1990's BlueKENNEL & SCHMENGER Shoes Nude Patent Leather Size MB 146 , Retro Womens Carved Creepers Platform Leather Wing Tip Wedge Heels Shoes Pumps , Authentic Prada Pink/ Black Sequins Mules Size 37.5 $790 In Box , Man's/Woman's jimmy choo gold strappy heels The color is very eye-catching Selected materials Suitable for color , ASICS Gel Cyber Sensei 6 Women's Volleyball Sneakers 7.5 (New)Nike Air Max Sequent 3 Cool Gray University Red Wolf Gray 921694-060 Men's NEW , SUPRA Stacks II Mens Canvas Trainer Sporty Gym Sneaker Shoe Plimsole Black WhitePuma Mens Ignite Limitless Colorblock Running Shoes - Black- White , Saucony Triumph Iso 2 Running Men's Shoes Size , Adidas Mens Equipment Support ADV Boost 93-17 Fashion Sneakers Black sz 9NB NEW BALANCE 1300 M1300CAG Classic Running Shoes SZ 9.5 - 12 Green Made In USA , Men/Women Lebron X "Christmas" size 12 Promotion Affordable Recommended today , Dockers Men's Robertson Oxford - Choose SZ/Color , Gentleman/Lady Mezlan Florence shoes Burgundy New product Modern design Very practicalVANGELO/TUX-1 Dress Tuxedo For Wedding Prom Wrinkle Free Gray Patent Size 9.5WMens 8 D M hush puppies steel toe penny loafer shoes brown leather SR dress workNEW STEVE MADDEN HUSTON FAUX LEATHER SNEAKERS WOMEN SHOES SIZE 8 , Man/Woman Lacoste Lancelle Baller Slip-On Women's Shoes Special price The highest quality material The first batch of customers' comprehensive specificationsNomad Women's Janis Boho Fringe Bootie Brown Zipper , DEMONIA Creeper-206 Series 3" PF Goth Punk Alternative Creeper
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230 - 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.

    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230 - 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
    Nina Armando Stacey Stacey II – – Nude Suede Heels Wedge Heels 0e43230
    Heels
    >
    ;