Never miss an update

Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb




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: Handmade
Color: Any Color, White, Black, Red, Blue, Clear , Occasion: Wedding
Features: Rhinestones, Mirror
Never miss an update

Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb - blurrypron.com

    Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb
    Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb
    SERGIO ROSSI "X-Puma": Violet Leather & Logo, Platform Heels/Pumps Sz: 8.5MWomen's shoes pumps leather model CRISTEL by HGilliane Design Us 3.5 to 12PAUL SMITH noir avec violet cuir suédé incrustations escarpin taille UE 40 , $1299 Dsquared Shoes Pink Leather Size US 9 IT 39 Save 8368 , Custom Bling Rhinestone Heels Any Color! FIRE & ICE , pre-loved authentic STUART WEITZMAN size 8 cobalt PYTHON slingbacks $850 MINT! , Women shoes pumps leather model ANGGUN by HGilliane Design Us 3.5 to 12Women shoes pumps leather model MIA Us 3.5 to 12 , $1299 Dsquared Shoes Pink Leather Size US 8 IT 38 Save 8366 , Escarpins femme en cuir de python - 36 - Fait main , French Sole FS/NY Women's Deluxe Pump Brown Size 11.0Femme chaussures pumps escarpin daim model FERA Eu 33 au 44Man's/Woman's Burberry Prorsum Platform Heels Selling real cheap priceara Women's Colleen 37120 Blue Caruso Leather Heels , Femme chaussures escarpin en Python model ALIYAH Eu 33 au 44 , ara Women's Colleen 37120 Titan Metallic Leather Heels , Femme chaussures escarpin en cuir model Lucine Eu 33 au 44 , Women shoes pumps leather model LAYLA by HGilliane Design Us 3.5 to 12 , V 1969 Italia Womens Pump Multicolor MINA , Gentleman/Lady yves saint laurent 40.5 (9.5) Outstanding features Various types and styles Outstanding functionCustom Bling" EXPLOSION" Rhinestone MIRROR Spikes Heels ! Weddings BirthdaysSTUART WEITZMAN-BLACK/CREME MICRO CHECK SEQUIN PUMPS - 6.5AAWomen shoes pumps snake leather model AFI Us 3.5 to 12 , Women shoes pumps suede model YANNIS by HGilliane Design Us 3.5 to 12Naot Women's Dream Black Madras Leather HeelsDOLCE & GABBANA Leather SHOES Kitten Mules Heels Brown Hot Pink Silver 40 10 9.5Custom Bling" Diamond" Rhinestone Heels Any Color! Weddings BirthdaysCHAUSSURES ESCARPINS CELINE - TAILLE 39 - TBEG -Italian women shoe size 9 Audacity Collection
    Custom Bling>Custom Bling
    Kamik Women's MOMENTUMLO Snow Boot, Charcoal, 9 Medium USDEWALT - Explorer Safety Boots Honey Nubuck Euro 41 -NIB $250 Vince 'Warner' Platform Sneaker in Black!Gentlemen/Ladies Dune London metallic Loafers size 8 Easy to use Quality and quantity guaranteed Breathable shoesnew $550 Giuseppe ZANOTTI white leather gold STUDDED thong mules flat shoes 36 6Women Sexy Pointy Toes Low Block Rivet Heels Slip On Loafers Shoes Black Fashion , Womens High Wedge Heels Leather Ankle Strappy Peep Toe Platform Sandals Pumps , Marc by Marc Jacobs Women's Ankle Strap Dress Sandal, Mineral Blue, 37.5 EU/7.5Gentleman/Lady shoes pair 229 Excellent value Quality and quantity guaranteed German Outlets , Mr/Ms CLARKS Women's Caddell Trail Platform High grade discount professional design , $150 VIA SPIGA CALE Light Cream Black Leather Designer Thong Sandals 9.5NEW Balenciaga Turquoise Giant Nickel Studded Sandal - 36.5/6.5 , Vans X A Tribe Called Quest Authentic Tracklist / True White sz 10.5 NIBNew THE NORTH FACE LITEWAVE TR Mens Hiking/Trail Running Shoes - Men's Size 11.5 , Gentlemen/Ladies Jordan 4 Reverse Motorsport Beautiful color Attractive fashion International big name , Nike LeBron James XV 15 ASHES OREO BLACK WHITE 897648-002 sz 8 BASKETBALL SHOESVANS SK8-HI REISSUE FEAR OF GOD FOG COLLECTION TWO BLACK BIRCH VN0A2XS1ML5 10 , Wolverine Men's Guardian 6 inCarbonx Work Boot - Choose SZ/ColorVans Sk8-Hi Pro Port Bronze MSRP $70 FSanuk Men's Pick Pocket TX Fashion Black Chambray Canvas Sidewalk Surfer ShoesNew Balance Women's 680v5 Shoes Black with Grey , NIB VANS Comfort Slide-On Shoes Men's Sz 7-13 , ADIDAS ORIGINALS ZX FLUX FARM RIO WOMEN'S RUNNING SHOES SIZE US 8 BLACK S76592NEW BALANCE WOMEN WL574CDA CLASSICS PINK BEEWAX Lifestyle Retro Sneakers 6-9Puma Suede Classic Womens 355462-77 Iron Gate Grey Winsome Orchid Shoes Size 6.5 , Inov-8 X-Talon 212 Trail Runner, Black/Red, 7.5 C US , Reebok Women's Harmony Road 2 Sneaker - Choose SZ/Color , La Redoute Collections Womens Patent Desert BootsDr. Scholl's Shoes Women's Tumble Boot, Stucco Microfiber, 6 W US , Camel Palma Waterproof Leather Boot Bos. & Co. Sz. 36
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Custom Bling

    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.

    Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb - 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
    Custom Bling" Glossy" Custom Rhinestone Any Heels Any Color! Bling" Weddings Birthdays 57780bb
    Heels
    >
    ;