Never miss an update

Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345




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
Gender: Men
Width: Medium (D, M) Color: Black
Brand: Dr. Martens Style: Work & Safety
Features: Slip Resistant Material: Leather
Never miss an update

Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345 - blurrypron.com

    Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345
    Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345
    Red Wing PECOS NAILSEAT Style 1155 BEST EVER Work Boot Brown Size 11.5 M CLASSICMan's/Woman's Red Wing Steel Toe Sz 9 New varieties are launched online shop Excellent workmanship , NEW Danner Striker II 45 GTX 4.5" Boots, Leather/Nylon, Police, Security, EMS,Lucchese Classics Pin Quill Smooth Ostrich Exotic Roper Western Boots 10 D S44Nocona USA Vintage Leather Western Riding Cowboy Boots Men's Sz. 10 DDr. Martens shoes size 13 US, 12 UK, 47 EUWolverine Shoes Mens Rancher Square Steel-Toe Wellington W10702NINJA KAHKI LEATHER BOOTS JAPANESE SAFETY HIGH CUT SNEAKER NO TABI SHOES UNISEXVintage CHIPPEWA Black Tag motorcycle biker engineer Brown Leather boots 9 D , KEEN Men's Brown 1007974D Water-Resistant EH Wenatchee Steel Toe Work Boots Sz 9 , Buttero Sidezip Boots Mens Black Calf 11.5 11 Margiela Carpe Diem , Salomon Mens Snowclog Snow Boot- Pick SZ/Color. , Vintage England*Black & Camo Camoflauge Dr Doc Martens*Skingirl Punk Grunge*UK4 , Under Armour Fat Tire Mid Hiking Boots 1296611-861 Blue-Grey Teal Men’s Size 12 , Clarks Men's Torset Vibe Oxford - Choose SZ/colorBates Men's TACTICAL SPORT Durable Leather and Nylon Black Boots E02261Harley davidson men riding boots troy size 10.5 new with boxAldo Men's Braon Slip-On Loafer - Choose SZ/colorKeen Men's Targhee II Wp-M Cascade Brown Golden Yellow Boots 1008417 , Tony Lama Western Cowboy Boots Men's Size 9 D Style 6711 Black LeatherDr. Martens Leather Black Boots Air Wair Size 14, Made In EnglandMen's Wolverine Ranger Boots Brown Leather W40253 Size 10.5 New , Vinatge Retro Mens Round Toe Motorcycle Riding Ankle Boots Work Boots CowboyCole Haan Mens BENTON Welt Chukka Oiled Suede Leather Boots NIB BLACK Sz 12 $250 , Georgia GB00160 Mid Calf Boot, Dark Brown, 12 W US , Red Wing 436 Men Safety Brown 6-inch Boots -Soft Toe -USA MADE size 13 D , adidas Adi Navvy Quilt Fur Lined Boots Green Brown G63275 High White 11.5 12 , Mr/Ms MEN'S SHOES SNEAKERS CATERPILLAR APA [P711584] use luxurious Easy life , IRISH SETTER 4806 8" WTRPRF 400G INSULATED WORK BOOTS 100% AUTHENTIC. NEW IN BOX ,
    Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345 - blurrypron.com>Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345 - blurrypron.com
    NIB The EMU Australia Beach Mini Boots Chestnut Color Size 8Nine West Quatrina Black Womens Shoes Size 10.5 M Boots MSRP $229 , DOC DR. MARTENS MIE CREAM AMAZZONIA PYTHON BOOTS MADE IN ENGLAND RARE UNISEX 5UKNIB CORRAL WOMEN'S COWHIDE ROUND TOE BOOT WITH ZIPPER AND STUDS C2993 SALE! , THE NORTH FACE BACK TO BERKLEY REDUX WOMENS BOOTS MISTY ROSE VINTAGE WHITE 6 -11 , Man's/Woman's Celine Leather Knee High Boots High-quality special function King of the crowdLadies Clarks Cloudsteppers Zip Up Wedge Heeled Textile Shoes Caddell Denali , Woemn's Real Leather Pointed Toe Embroidery Flowers Slip On Sneaker Casual Shoes , XTRATUF Sharkbyte Women’s us 8.5 Nubuck Leather Deck Shoes 22504 A42 , Peu Senda K200058 CAMPER PEU SENDA WOMENS FASHION SNEAKER SZ- Choose SZ/Color. , Pleaser DELIGHT-608 Women's Clear Silver Chrome Heel Platform Ankle Strap SandalWomens Embroidery Floral High Block Heels Summer Pointed Toe Slingback SlippersALAIA Sz 37.5 Metallic Silver Leather T-Strap Sandals with Tonal HardwareFree People Sirenia Sequin Heel by Chelsea Paris-39-$595 MSRPChristian Louboutin Taupe Patent Leather Yoyo Peep-Toe Heels SZ 38 , Beacon Rio Women's Sandal Black-blue-red Size 10.0 , DC Council Mid X TR Women Size 7 US BMX Skate Shoe Black Cat Print Taylor ReeveRARE Nike Zoom Kobe V 5 Promo Sample Sz 14 Player Exclusive Lakers Protro , Adidas Originals White Mountaineering NMD R2 Primeknit Mens Trainers BB2978 D6MERRELL Chameleon II Stretch Trekking Hiking Outdoor Athletic Shoes Mens New , Wellco There Back Navy Flight Deck Steel Toe Boots 5.5 R Black Vibram ECAriat Mens 11 W Brown Leather Western Cowboy Work Boots 34824 , Steve Madden Men's Fighter Fashion Sneaker - Choose SZ/Color , Men Genuine Leather Metal Pointed Toe Embroidery Zipper Formal Dress Party Shoes , ONITSUKA TIGER WOMAN FREE TIME CASUAL SNEAKER SHOES CODE D6E7L MEXICO DELEGATION[365054-02] New Women's PUMA Fenty Bow Low Sneaker - PinkWomen's Black Harley Davidson Leather Motorcycle Boots- Size 6.5 , Tara M.® Teagan Women's Classic Motto Black Leather Boot Size US 7M ( ) NEW! , Demonia SHAKER-50 52 55 Womens Wedge Platform Ankle BootSexy Stretch Skintight Thigh High Boots SZ 6 to12 Adore-3000
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345 - 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 Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345 - 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 Original Men Dr. Martens 1460 Hi Top 29434 8 - Eye 11822006 Black Smooth 100% Original New b116345
    Boots
    >
    ;