Never miss an update

Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b




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: Boohoo
Occasion: Going Out Style: 2 Part
Exact Color: Black MPN: Does Not Apply
Gender: Female Color: Black
Never miss an update

Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b - blurrypron.com

    Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b
    Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b
    MARC FISHER Women's Heels Wander Wedge Sandal Denim Two Tones Ankle Strap 8.5 M , DOLCE VITA 204601 Beige/Snake Print Patent Leather Pumps Pointy Toe Shoes Sz. 9 , ATTILIO GIUSTI LEOMBRUANI AGL Gold Metallic Leather Peep Toe Pumps SZ 37.5 Italy , Runway Womens Stiletto Heel Wedding Rhinestone Buckle Sandals Party Bling Shoes , Womens Faux Pearl Fur Lined Pumps Velvet High Block Heels Pointy Toe Shoes Chic , Womens Pointed Toe Bowknot Low Heels Retro Leather Pumps Shoes 2018 Spring sizeChic Ladies Pumps Checks Pointed Toe Suede Med Heels Slip On OL Office Shoes newvintage 90s Collette size 38 Italy black fur wedge shoes very good 6541548 , BRUNO MAGLI Womens Beige & Black Leather Cap Toe Sz 39 Heels 201348 , JBU by Jambu Women's Pilot Wedge PumpWomens BETSEY JOHNSON 202217 Graphite Open Toe Heels Sz. 8.5 M , Womens Open Toe Suede Leather Blingbling High Heel Stilettos Platform Sandals Sz , COLE HAAN BLACK LEATHER WHITE STITCHING MARY JANE HEELS PUMPS SIZE 8 1/2 B , CHARLES BY CHALES DAVID black snake print cross strap pumps sz. 9.5 M NEW! $110 , Fashion Women Ankle Strappy Round Toe Girl's Slip on Buckle strap Platform Shoes , Donald Pliner Women's Black Suede Wedges Size 8M Comfy Elastic Band , Women Elegant Cow Leather Pointy Toe High Heels Stiletto Court Party Shoes 10.5 , Women Pointy Toe Stiletto Prom Party Shoes High Heels Black Pump Zsell , 2018 Summer Sexy Feather Womens High Heels Rhinestone Party Stilettos Sandals beJessica Simpson Womens Sampson Leather Closed Toe Wedge Pumps , BX775 OLGA RUBINI shoes black suede patent leather women pumpsGentlemen/Ladies Funtasma BEE-16 Adequate supply and timely delivery Elegant style Full range of specifications , Ladies Peep Toe Leather Buckle Rhinestone Block High Heels Sandals Shoes 2 ColorSz35-43 Women's Rhinestones Party Club Pumps Platform Stilettos High Heel ShoesWomens Chic Sexy Open Toe Paillette Wedge High Heels Platform Ankle Strap Sandal , Easy Spirit Rovana pump taupe tan suede leather 2.75" heels sz 12 Med NEWGentlemen/Ladies Funtasma CANDYKORN-12 Aesthetic appearance Fine art renewed on time9West Women's Black/Suede Peeptoe Shoes Size 9 - Regular Price $89 , Sexy Womens Hollow Strappy Pointy Toe Splice Shoes Pumps High Heel New Stiletto
    Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b - blurrypron.com>Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b - blurrypron.com
    BIRKENSTOCK BRAND NEW DUNDEE PLUS BLACK SUEDE LEATHER BOOT SIZE 41 , Merrell Polarand Rove Peak Black Leather Winter Snow Boots Womens Size 7Aquatalia By Marvin K. Side Zip Leather Knee High Boot Brown Women Sz 11 5225 *NIB Christian Louboutin S.I.T. Rain 100 Black Nappa Leather Ankle Heel Bootie 35FUNTASMA CARRIBEAN-199 MENS BROWN ANKLE BOOTS COSTUME SIZE US 8-14 , Trespass Mens Renton Waterproof Walking Boots (TP1145)Versace 19.69 D02 NAPPA BIANCO VERNICE ballerina shoes Women's Multicolor_ AUPUMA Descendant Black Aged Silver Running Athletic Sneakers Adult Men ShoesMEPHISTO Women's AIRJET Modern Loafer Slipper Wedge Slip On Shoes Flats 9.5 (I7)Jimmy Choo brown and gold tone slippers size 9Alegria Pal Patent Leather Burgundy Mary Jane Velcro Shoes Sz 35 / 4.5 - 5. , Anne Klein Lizbeth Suede Penny Loafer Black Multi New with BoxNew Women's Schutz Quereda Size 7 B Ciment Suede Fashion High Heels Shoes $220 , NIB Anthropologie Jeffrey Campbell White Leather Blue Floral Slide Sandal 10 , New Saint Laurent Paris Pink Leather Studded Pointed Toe Pump Shoe sz 9.5 / 39.5Lucca Lane Wynona Wedge Slip On Sandals, Black, 8 US , PINKO WOMAN CLASSIC DERBY SHOES WITH WEDGE SUEDE CODE PK SAMBIASE 1W201N Y1A4Dolce&Gabbana flats t-strap sandals in Blue Patent Leather Size US 8.5 - ½ , Vans x Marvel Avengers SK8-Hi Captain Marvel VN0A38GEUBI New W/Box DS Men SZ 5.5 , adidas Men's Freak X Carbon Mid Football, Black/White/Metallic Silver, Size 13.0 , Nike Air Vapormax x OFF-WHITE “The Ten” Virgil Abloh Size 10 White , Nike Lebron 9 Summit Lake Hornets Purple Turquoise Blue SZ 9.5 469764-500 JamesColumbia PFG Men's Bahama Vent Canvas Boat Shoe,9.5 DM US,Whale,FissionPunk Mens Low Top Rivet Spike Suede Loafers Slip On Hip Hop Casual Sneaker Shoes , NEW PRADA MEN'S BLACK LEATHER ZIP DETAIL HIGH TOP SNEAKERS BOOTS SHOES 8/US 9Magnanni 9341 Black Leather Apron Toe Kiltie Tassel Dress Loafer Men's US 12M , ASICS GEL-Tech Walker Neo 4 Women's White/Periwinkle/Ink 4680128Red Color Sexy Flats Knee Boots Rabbit Fur On The Top Size 5.5Jessica Simpson Womens Ceri Suede Peep Toe Ankle Fashion Boots , A2 Aerosoles Black Ride Out Equestrian Boots Shoes for Women ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b - 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 of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b - 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 of/Women Boohoo Womens mogochinese-29927 Clear and Stud 29920 Heels Louis, elaborate First batch of customers King of the crowd e793b0b
    Heels
    >
    ;