Never miss an update

Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1




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: Lacoste
Color: Black Style: Athletic Sneakers
Closure: Lace Up Width: Medium (D, M)
Upper Material: Leather Material: Leather
Never miss an update

Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1 - blurrypron.com

    Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1
    Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1
    SALE NIKE AIR SKYLON II 2 COURT PURPLE SOLAR RED WHITE AO1551 103 NEW SZ 7-11Nike Air Presto Mid Utility Men's Size 12 River Rock , NIKE HYEPRDUNK LOW LUX MENS BASKETBALL SHOES BLACK WHITE 864022 001 , Men's Nike Air Max 95 Size 10.5 Solar Red 2011 Retro Sneakers GREAT CONDITIONNEW Nike Zoom Kobe Icon Jacquard Gold White 819858-700 Size 11.5Adidas Alphabounce Aramis Shoes Size 8 - 13 Black White B54366 Turtle Dove Zebra2017 Nike Air Jordan 4 Retro BG "Motor Sport" Sz 6.5Y (0356) 408452-117Air Max Lebron X Low USA Size 8.5VANS x NINTENDO Mens Shoes (NEW) Chima Ferguson Pro GREY MUSHROOMS Free ShippingREEBOK DMX RUN 10 OG SZ 9.5 BLACK WHITE TWEED BROWN THUNDER BLUE 2017 V44400NIB Lalo ZODIAC RECON Running Shoes Black Ops Crossfit Mens Size 11.5 , 2016 Nike Air Max 90 Ultra SE Pure Platinum Grey Crimson Sz 12 (0127) 845039-006 , Nike X Skepta Air Max Deluxe SK Sz 10 NEWNike ID Air Zoom Pegasus 34 Men's 15 W Wide White Black Volt RARE NEWNike LeBron Soldier 11 XI Black White Royal 897644-005 Size 14Nike Air Jordan Retro V Fire Red 440888 100 Sz 7y Black Red Bred IV XI IX XIIINIKELAB GYAKUSOU LUNAREPIC FLYKNIT SZ: US MEN'S 9 RETAIL: $195.00 , Nike LeBron 15 XV Low Men's Sz 11 White/Metallic Silver AO1755 100 , Adidas 350 Men's Shoes Sneakers CQ2779Nike Air Max 1 WHITE ROYAL BLUE AQ0927-100 sz 12 , New Nike Air Jordan 10 Retro “Cool Grey” 310805-022 Size 7Nike Free Trainer 1.0 Dark Grey Black Blue Legion New 11 [807436-004] , Saucony Men's Freedom ISO US 14 M Black Mesh Running Sneakers Shoes $160.00 , Nike Kobe VIII 8 System Mens Sz 16 Black Grey Sulfur Electric Yellow 555035-001Adidas Originals Swift Run Black/Green Knit Mens Running All NEW , Nike Men’s LeBron XIII Elite Limited Squadron Blue 864942-440 shoes Size 13DS Nike x J. Crew Killshot 2 White/Navy/Gum Leather Suede Sneakers~Men's Size 10 , Nike Free 4.0 V5 Running Men's ShoesNike Sb / Janoski / Lemon Twist / Size 9 / Rare / (333824 770) New
    Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1 - blurrypron.com>Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1 - blurrypron.com
    Womens Round Toe Leather Punk Rivets Studs Ankle Boots Motorcycle Shoes SzNew ALEXANDER WANG Gabi Leather Ankle Boots Shoes, Black, retail $675 , CROCKETT & JONES TWO TONE TAN IVORY BURNISHED CALF HANDGRADE MADE IN ENGLAND 5F , New Very Volatile Sampson Fancy Womens Leather Bootie Shoes Size 6.5MMASCOTTE Silver SPARKLE RHINESTONE PLATFORM STILETTO HEELS Club Stripper 8 , Women 2018 Spring Slip On Wedge Mid Heel Tassles Fringe Loafer Pumps Casaul SZBridal By Butter Size 5 M White Satin Open Toes Pumps Heels New Womens Shoes , See by Chloe NEW Neon Highlighter Green Leather Pumps Heels sz 39.5 9.5 $595 , NWT Olivia Rose Tal NY Bordeaux Art To Wear Vtg Look Leather Kitten Heel Shoes~7 , Occident Women's Retro Mary Janes Floral Rhinestone Shoes High Heels Court PumpsWomens Gladiator High Heels Hollow Out Roman Leather Sandals Knee Higb BootsSchutz 1723000503FC Womens Printed Pump- Choose SZ/Color. , Chic Womens Roman Shoes Ankle Strap Wedge Sandals Slingbacks Suede Casual ShoesLesilla Black Thong Sandal With Black Stones Size 39 , NIKE COURT BOROUGH MID WINTER OUTDOOR GREEN MEN 9.5 NEW AA0547-300MENS adidas Superstar II 2 HEMP Bliss Tan Brown Q33006 Size 8.5 US Shoes NewAdidas Men's Zx Flux Adv X Running Shoe , Nike AIR JORDAN 5 Retro METALLIC GOLD SIZE 9.5 Mens In Original Box EXCELLENTALDO Men's Fazio Western Boot - Choose SZ/ColorNEW Caterpillar CAT Men's Tuffnet Ease Knit Composite Toe, GRAY 9M - FREE SHIP , Adidas B37846 Campus Casual shoes grey sneakers , PUMA 36316404 Suede Classic Mono Reptile-U Fashion Sneaker- Choose SZ/Color.NEW Nike Air Pippen 325001-700 Mens Shoes Trainers Sneakers SALELeekee men snake skin hand made exell cond blk leather shoe size 9.5D , Cole Haan Men’s Grand Wing Oxfords 10.5Women's Nike Flyknit Trainer Chukka FSB Size 5.5 (805093 603) NO BOXNEW Adidas Outdoor Women's CH Winterhiker II CP W Snow Boot BROWN SZ 6 B33127 , Easy Spirit Joanny Womens Black Fashion Ankle Boots SZ 9 N DARK GREYNine West Orynne Leather Ankle Boot Black Size 7.5 NIBWomens High Heel Pointed Toe Side Zip Rivet Slim Faux Suede Shoes
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1 - 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 Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1 - 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 Lacoste Europa 417 100% Sneaker 7-34SPM0044024 Men Black Leather Europa 100% Original New b87b9a1
    Athletic Shoes
    >
    ;