Never miss an update

Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a




Never miss an update

Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a - blurrypron.com

    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a
    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a
    Jimmy Choo Varna Raspberry Satin & Snakeskin Peep Toe Sandal Sz 38.5Nicholas Kirkwood Silver Metallic Glitter Grafitti Platform Sandal Size 36 1/2 , $895 CHRISTIAN LOUBOUTIN DOUCE DU DESERT 100 HOT PINK SATIN PUMPS SIZE 37.5 , YSL Yves Saint Laurent Palais Open Toe Platform Bow Pumps Shoes Heels Clay $795 , CHRISTIAN LOUBOUTIN $895 BLACK TIBUR PATENT PEEP TOE PUMPS (5.5/36) , Man's/Woman's giuseppe zanotti! Great Condition! Size 6 Elegant shape Medium cost Rich on-time deliveryNew Christian Louboutin Mimini Black Patent Strappy Sandals Shoes 41 39 SEXY! , Christian Louboutin Very Rete 120mm Red Sole Pumps Beige Size 35 US 5 $995 , Gentleman/Lady So Kate 120 Metal Watersnake Blue wholesale High quality and economy Vintage tide shoesNIB Christian Louboutin Pigalle Follies 100 Opal Green Blue Patent Heel Pump 39Christian Louboutin FOLLIES SPIKES 120 Hawaii Floral Heels Pumps Shoes $1295 , Men's/Women's Giuseppe Zanotti shoes size 37, orig.$2650 Rich design First grade in its class As of the latest modelMr/Ms Narciso Rodriguez Python Clogs Size 40 High grade Medium cost buy onlineCHRISTIAN LOUBOUTIN Black Leather Cork Patent Peep Toe Wedge Pump Shoe Size 40.5 , NIB Christian Louboutin Houla Hot 100 White Patent Kid Pump Heel Shoe 39 $1095NIB Christian Louboutin Iriza 100 Nude Beige Quadro Lurex Glitter Heel Pump 40.5Christian Louboutin Women's Studded Anjalina Pumps 100mm Black Sz 37 1/2 , Christian Louboutin Nude Patent Calf Leather "Lady Peep" Pumps SZ 36 , New Sergio Rossi Womens Black Ankle Strap Heels Size 6New MANOLO BLAHNIK Carolyne Light Beige Nude Suede SHOES BB Heels 36 36.5 41..5Christian Louboutin New Very Prive Leopard Patent Calf Pumps Heel Euro 40.5Christian Louboutin Conquilla 120 Black Leather Pumps Euro 36 , 750$ Manolo Blahnik Chaos Black Leather Sandals 7 , Christian Louboutin Pigalle Plato 120 Red Patent Leather Pumps Heels Euro 38.5 , Bronze Evening Jimmy Choo Shoe NIB size 41BNIB BALENCIAGA BOOTS GREY SIZE40 Retail $945Christian Dior Nude Conquest Pumps Sz 38.5 (Brand New without box)Gentleman/Lady Valentino Rockstud T Strap Pump Big clearance sale At a lower price Don't worry when shopping$745 New Manolo Blahnik Tres 105 Suede Wine Burgundy Sandals Heels Shoes 36 40.5
    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a - blurrypron.com>Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a - blurrypron.com
    Trinity Ranch Gray Leather Suede Fringe Turquoise Concho Women's Boots Size 9New $168 Jack Rogers Deborah Black Leather Ankle Boots/Bootie Woven Short 8.5Womens Suede Leather Stilettos Rhinestones Embroide Over Knee Thigh Boots Shoes , Men/Women Chloe Shoes 319462 Brown 35 1/2 Not so expensive Price reduction Fair priceA.S. 98 Vintage Brown Snakeskin Embossed Leather Buckle Boot , Adidas Y-3 Y3 PureBoost Triple White US10/UK9.5/EU44 Pure Boost Yeezy 350 kithArcopedico Talia Black Leather Mary Jane, size = US 9.5 to 10 , Earth Women's Brushcherry Black Kid Suede Dress FlatSkechers BOBS Women's Plush - Cats in Space Flat, - Choose SZ/Color , Clarks Unstructured Womens Un.Jump Loafer- Pick SZ/Color. , Man/Woman Dr. Scholl's Women's Clout Ankle Bootie Many styles Order welcome retail price , HK BY HEIDI KLUM WOMENS GEORGETTE PLATFORM SANDAL, BLACK, 1O M US, EURO 40 , vince black snakeskin leather low heel ankle strap 39 totokaelo garconne wang , Badgley Mischka Witney silver metallic 6.5 new in box bridalELEGANT TOD'S HEELS PUMPS SHOES NEW MADE IN ITALYChic Womens Korea Style Buckle Strap Peep Toe Wedge High Heels Platform Sandals , NIKE AIR MAX TORCH 3 MEN'S BLACK RUNNING SHOES,Sanuk Mens Vagabond Chill Militant Slip Ons Grey Size 9 NewAquatalia Forrest Pebbled Nappa Black Leather Wingtip Boot - Mens Size 10 MNike womens Lunarconverge White Racer Pink 852469-101 Size 11 , adidas Originals Superstar Women's White/Collegiate Navy/Gold Metallic BY3721 , BRAND NEW WOMEN'S PUMA FASHION METALLIC SHOES SNEAKERS SIZE 8.5 GOLD & BLACK , Nike Women's SF AIR FORCE 1 MID Shoes Mushroom-Light Bone AA3966-200 b , ADIDAS BY STELLA McCARTNEY ULTRABOOST UNCAGED.SIZE 9.5.MODEL BB6272Womens Over Knee Boots Slim Fit Stilettos Suede High Heels Shoes Stretch Sz35-43Fantastic Flying Butterfly Girl's Canvas Martin Boots for WomenWomen Zip Round Toe Block Heel Plaid Leather Shoes Sexy Ladies Ankle Boots T85Softspots Womens Black Campbell Tall Boot Size US 9 M /NEW SAM EDELMAN Sz9.5US PIPP PERFORATED SUEDE ANKLE ZIP CLOSURE BOOTIE BLACK$150 , New $428 FRYE MELISSA BUTTON EXTENDED CALF S 419 Women Shoes boots Sz 6M ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a - 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.

    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a - 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
    Charlotte Olympia Priscilla Glitter Red Platform $945 Pump, Red Sz:38.5 Retail Charlotte $945 NEW a50760a
    Heels
    >
    ;