Never miss an update

Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4




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
Modified Item: No
Brand: BROOKS MPN: 110236D452
Never miss an update

Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4 - blurrypron.com

    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4
    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4
    Nike Mercurial Superfly V DF FG MEN SIZE 8 - 831940-801 , Adidas x Mastermind EQT Support Ultra MMW Blue Mystery Ink CQ1827 LIMITEDnew Air Max 1 Essential 537383 041 running shoes BLACK/DRK RYL BL/ANTH Size 9 , Nike Air Max Plus EF In Tuned Air Velvet Brown Sail AH9697 212 Sizes 10 & 12 , Adidas Pureboost Mens Running Trainers Sneaker BA8893 , Nike LeBron XV 15 Graffiti White Black University Red AQ2363-100 Air Ghost Zoom , Nike Air Max 1 SE Satin Pack University Red Black Deep Royal White AO1021-600 , Nike Air Jordan XXXI 31 Shattered Backboard Mens Shoes Black Starfish Size 11Vivobarefoot Men's Primus Trail SG Mesh - Black/Red - US 13 - NEWNike Men's AIR MAX 2016 Shoe AUTHENTIC Black/White-Dark Grey 806771-001 Size 9.5 , Air jordan 4 retro black cement 2012 Size 12Brooks Adrenaline GTS 16 Mens Runner (D) (068) + Free Delivery , Adidas Originals Men's Forum Mid Refined Shoes Size 7 us F37831 LAST PAIRMen's Air Jordan Ultra Fly 3 Basketball Black/White/Light Smoke Grey AR0044 001 , Nike Air Max 2017 Mens Running Shoes Maroon White Gym Red 849559-601 Size 10Nike Air Force SF AF1 Mid Mesh QS Cargo Khaki Olive Orange AA7345-300 8-13 1 , NEW BALANCE 999 SZ 11.5 MADE IN USA PREMIUM SUEDE TAN BEIGE LIGHT BLUE M999CSS32 RARE Adidas James Harden Vol 1 PK Basketball Shoes Green Sz 14 B75631NIKE AIR FORCE 1 FOAMPOSITE CUP Shoes "Triple Black" AH6771 001 one Size 9 NewNew Men's ADIDAS UltraBoost Uncaged Running Sneaker - DA9164 - SIZE 11 , Adidas Power Perfect III Mens Weightlifting Shoes Trainers Sports Black BB6363Nike Zoom KD 4 IV CT16 QS Thunderstruck White Photo Blue Grey AQ5103 100 Size 10 , Nike Air Jordan Retro I NYC 23NY Black Oreo 715060 002 Size 14 PSNY XI VI V IVAsics Rote Japan Light [TVR490-2358] Volleyball Badminton Shoes Red/NavyMen's Under Armour Curry 4 Basketball Shoes Black/White/Black 1298306 001Men's Nike Free RN 2018 Running Shoes White/Black 942836 100Nike Zoom Stefan Janoski PRM DB Doernbecher Black Red 642180-006 Men's 10.5-11 , Nike Air Zoom Kobe Bryant AD Mamba Mentality Passion Habanero Red xi 922482 600Nike Air Huarache Drift Textile Slip-On Low-Top Running Sneakers Mens Trainers
    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4 - blurrypron.com>Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4 - blurrypron.com
    Durango Women's Crush Western Boots Style DCRD146 , Men's/Women's Armani Jeans 935565 CC500 00010 Trainers Reasonable price luxurious Comfortable and natural , NIKE MENS RENEW RIVAL PURE PLATINUM WHITE SHOES 2018 **FREE POST AUSTRALIATommy Hilfiger Frank3 Slip On Fashion Sneakers 685, White, 10 USCLARKS Cheyn Web Ladies Leather Wide Fit E Mary Jane , Merrell Ceylon MJ Mary Janes Women's size 9 M Black Casual Slip On ShoesCrocs Women's LiteRide Mule - Choose SZ/Color , Drew Women's Orchid Bone Soft Pebble Leather Comfort ShoesSkechers Shape Ups Women's Black Athletic Style Mary Janes US Sz 6.5 EU Sz 36.5 , Women's Stuart Weitzman Jute/Gold Woven Classic Pumps Sz. 8.5N MINTY!ZARA NEW WOMAN MID BLOCK-HEEL SHOES METALLIC DETAILING BURGUNDY 35-42 6234/301 , J. CREW WOMEN'S BLACK SUEDE HEELED PUMPS,SIZE 10, MADE IN ITALY, NEW IN BOX !!! , NIB Badgley Mischka Ryanne satin D'orsey heels pumps sandals open shoes blue 8 MAquazzura NIB "Peony" Pink Suede "Sexy Thing" 85 mm Cutout Sandals SZ 37NikeLab Womens Winter Boots Gyakusou Gaiter Sneakers White (US 8.5)adidas Skateboarding Men's Seeley Burgundy/Black/White Sneaker Size 13Balance Mens 574 Canvas Waxed Pack Fashion Sneakers, Black/Outer Space, 7 D USNew Balance Men's Vazee FuelCell v1 Running ShoeNike SB AF2 Low Supreme Mens Size 11 Shoes Orange Blaze White AA0871-818 , WORN 1X Nike Air Jordan Retro 9 IX Johnny Kilroy Red Metallic 302370-012 Size 11 , Handmade Men Navy blue Suede Shoes, Men fashion Suede Tassel shoes and moccasin , Stacy Adams Rayfield Mens Oxford- Choose SZ/Color.Men's Leather Pointed Toe Slip on Loafer Shoes Floral Printed Formal Casaul PumpVANS Sk8 Hi Slim (Light Gum) Raspberry Rose Pink Skate Shoes WOMEN'S 6.5 , Wmns Nike Air Zoom Pegasus 33 Grey Pink Womens Running Shoes Sneakers 831356-006Ash Illusion Slip-On Women US 7 orange Loafer , WMNS NIKE FREE TR 6, STYLE 833413 007, SIZE 9, GREY with TEAL, NEWWomen's Brogue Block Med Heel Knit Slouchy Knee High Pull On Ankle Boots Shoes 9 , NEW Puppies LOLA Chamber Tan Leather Ankle Boots Size 5.5 WaterproofDonald J Pliner womens boots tall knee high 7 M brown distressed leather Gilsey ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4 - 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.

    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4 - 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
    Brooks Glycerin 14 Mens Running Running Runner 14 Brooks Shoe (D) (452) fb1cce4
    Athletic Shoes
    >
    ;