Never miss an update

Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b




Item specifics

Condition:
New with tags: A brand-new, unused, and unworn item in the original packaging (such as the original box or bag) ... Read moreabout the condition
Brand: Fabulicious
MPN: AUD03-SFA
Never miss an update

Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b - blurrypron.com

    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b
    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b
    BCBG Generation Harleigh Pointed Toe Pumps, Shell , EDGII 100% Sheepskin Leather Cross Ring Heel White size 38/39/40 , Man/Woman DYNAMITE-02 Glitter Silver Complete specification range stable quality Seasonal hot sale , BNWOB Clarks Artisan Heavenly Star Leather Black Heels US 7.5 , Gentleman/Lady VANITY-415 Red Outstanding features In short supply Fair price , Wittner Ladies Shoes Black Patent leather Heels , Gentleman/Lady Designer womens patent heels 10/42 Clever and practical Various types and styles Explosive good goodsStuart Weitzman Block Heel Sandal 41 MetallicNEW Easy Steps Carmen Nude Leather Pump Heels Women Shoes C-FitGentlemen/Ladies Filippo Raphael 38.5 NEW Practical and economical Online export store Authentic guaranteeNEW Trenery Shoes $179 Size 41/10, Black/reptile PatternEXPRESS! BORDELLO TEEZE-06~BLACK PATENT CLOSED TOE PLATFORM STILLETTO PUMPS , NEW Walnut Melbourne Andy Csinger Ladies Wome's Leather Andy Suede Block Heel , Desiree Deraya Gold Leather High Heel Sandal Size 41Nina Charisa Kitten Heel Pumps, New Navy, 5 USPLEASER FABULICIOUS AMUSE-20 WHITE PATENT POINTED TOE PUMPS 5" HEELS SZ 5-14TS35 Miaa Platform Wedge Pumps, Black Snake , WOMEN SHOES FETISH SANDALS ANKLE STRAP EXTREME WEDGE HEEL 5.5" PATENT REDEDGII 100% Sheepskin Leather Cross Ring Heel Black size 37/38/39/40Gentlemen/Ladies NEW Lipstik Theadora Flame Red Pump Reasonable price luxurious Most practicalCalvin Klein Gayle Classic Pump Heels 776, Black Patent, 5.5 US / 35.5 EUCL by Chinese Laundry Nima Wedge Pumps, LeopardMen/Women Django juliette shoes fashion Comfortable touch wonderfulAldo Clarisse Ankle-Strap Block Heel Pumps, Light Pink , Rockport Total Motion Kalila Pointed Toe Kitten Pumps, Pink , Calvin Klein Luka Slingback Pumps 267, Black Patent, 7 US / 37 EU , Gentleman/Lady Kagui Leather Black Pointed Pump 39 Best-selling worldwide Year-end sale Fashion versatile shoes , Nina Karen Rhinestone Ribbon Ankle-Strap Pumps, Royal Silver, 6.5 US / 36.5 EU , Nine West Florent Strappy Pumps 836, Natural Suede, 10.5 US ,
    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b - blurrypron.com>Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b - blurrypron.com
    Lauren Ralph Women's Damara Ankle Bootie - Choose SZ/ColorNew! Ivy Kirzhner Santa Cruz Black Studded Pointy Toe Leather Ankle Boots US 8DSQUARED2 MEN'S SHOES LEATHER TRAINERS SNEAKERS NEW 251 WHITE 9B3 , Arcopedico W 12 Black Suede Oxford, Size = ( US 8 to 8.5 )Vince New Bogart 3 Black Womens Shoes Size 7 M Flats MSRP $250 , Tommy Hilfiger US Shoe Size Women Comfort Casual Fashion Athletic White, Navy , GIVENCHY PARIS $950 black and white studded oxford derby dress shoes 34.5 NEWSalvatore Ferragamo 7 Black Leather Buckle Flats Shoes NIB 1242-9-51018Velvet Angels Black Suede Heels Size US 8.5 / Euro 38.5 , Occident Womens Pull On Mary Janes OL Date High Stilettos Pull On Pointy Toe newMens Under Armour UA 1264224-002 Rocket Basketball Black Pink Size 12.5 NEWSALE AIR JORDAN FLIGHT LUXE MIDNIGHT NAVY GREY 919715 402 SZ 8-14 NEW RETRO , Nike Air Jordan Retro 1 Mid Shoes Men's 12 Fire Red,Black,Gray 554724-603K-Swiss Men's Baxter SP Sneaker - Choose SZ/Color , Vibram Furoshiki Black Unisex sizes XS, S, M, L, XL, XXL NEW!!!Gentleman/Lady New original Adidas Alphabounce 2 Various goods Skilled manufacturing high quality productNIB New Balance MENS MRT580BV BLACK ELITE EDITION PLAYFUL LIFESTYLE SNEAKERS , Nike Air Jordan 2 Spike Lee Radio Raheem Just Don Pinnacle Supreme Motorsport , NIKE KYRIE 3 BHM BLACK HISTORY MONTH BLACK/WHITE SIZE MEN'S 9 [852415-001]Adidas Original's NMD R1 Primeknit PK Grey / White Sizes , Wolverine - Harwell Chukka Boot - Black - Size 10 , Rivet Fashion Men's Moccasins British Style Pointy Toe Shoes Party Clubwear Size , Adidas Superstar Glossy Toe Size 8 Women's Tecste Black S76723 Sneakers StyleWomen's Puma Basket Heart VS Shoes Black Everyday TrainersNike Air Max Sequent 3 Premium V Women Shoes Oil Grey Running Shoes AR0255-001AE447 BIKKEMBERGS shoes black white textile leather women sneakersAsh Womens Jaguar Fashion SneakerEU/- Pick SZ/Color.ROCKET DOG Plaid Tartan Fuzzy Fleece Lined Muk Luks Boots Shoes Womens Sz 8.5 Vtg Nocona Cream Brown Exotic Leather Cowboy Patch Boots Womens Size 4.5 C USA , Rialto Crystal Knee High Slouch Boots, Brown ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b - 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.

    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b - 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
    Gentleman/Lady delicate AUDREY-03 Outstanding style Silver use delicate Outstanding style baf7a2b
    Heels
    >
    ;