Never miss an update

adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05




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
Authenticity: 100% Authentic Guaranteed
Colour: Black SizeScale: Us Size
Material: Synthetic Shoe Type: Sneakers
MPN: Cq2197 Style: Fashion Sneakers
Width: Medium Brand: Adidas
Never miss an update

adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05 - blurrypron.com

    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05
    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05
    New Spiaggia Libera Orazio Back Strap Mens Shoes Casual Sandals Sandals FlatMen Black Light Safety Work Boots Steel Toe Cap NWT (Made in Korea)Lakai Shoes Sheffield XLK Black Gold Suede Skateboard SneakersEmerica Shoes Reynolds 3 G6 VULC Black White Gold USA SIZE Skateboard Sneakers , Mens Snake Skin Pointed Toe Metal Leather Buckle Vintage Cuban Heel Chic Shoes , LAKAI FLACO HIGH BLACK / GOLD SUEDE NEW SKATEBOARD SHOES AUST SELLER , GHOUD Venice Men's Shoes Sneakers Man Low Leather White Black Logo Made In ItalyNew Mens Sneakers Spring Court B2N 1001 Classic Canvas - White Sneaker Shoes , Lakai Shoes Staple Black Orange Suede USA SIZE Skateboard Sneakers FREE POSTHUF CROMER BLACK WHITE SHOES LOW NEW FREE POST AUSTRALIAN SELLERLakai Shoes x Motorhead Riley Hawk 2 White Suede Skateboard Sneakers FREE POSTReebok Classic Exofit Lo Clean Vintage Shoes Sneakers Beige BD3380 SZ 4-12.5 , HUF Shoes Clive Cool Grey USA SIZE Skateboard Sneakers FREE POSTHUF Shoes Cromer Flamingo USA SIZE Skateboard Sneakers FREE POSTGentlemen/Ladies ☆—Used—Osiris Bronx—Teal—Green—Blue—Black—Sneakers—Shoes—Size US 11.5—Skater—☆ Reasonable price Pleasant appearance Export , Zara AU Men Embossed leather driving shoes 2613/302/009 , Skechers Harson - Ortego Shoes Memory Foam Casual Leather Trainers Mens 65620 , NIKE SB ZOOM JANOSKI HT WOLF GREY / DARK GREY SKATEBOARD FREE POSTAGE AUSTRALIAN , Zara AU Men Sporty leather ankle boots 2055/302/004 , JO Ghost Modern Leather Men's Shoes Made in Italy $550 sz 40 6US , Emerica Shoes Reynolds G6 White Skateboard Sneakers , New Birkenstock Boston Men's Black Mens Shoes Casual Shoes Flat , STICO Mens GRAY Non-Slip Safety Chef Kitchen Toe-Cap Shoes EVA KOREA_V , DIADORA MEN'S SHOES SUEDE TRAINERS SNEAKERS NEW CAMARO GREY 58C , Adidas Originals Nizza Shoes Athletic Sneaker WHITE / RED / WHITE CQ2326 SZ4-9eS Shoes Contract Tom Asta White USA SIZE Skateboard SneakersJordan 4 levis black denim sz US 10.5PREMIATA men shoes Grey suede low sneaker with white leather details , Wolverine W02363 Amphibian Composite Toe Gore-Tex Waterproof Work Safety Boot
    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05 - blurrypron.com>adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05 - blurrypron.com
    Altra Footwear Women's Superior 3.5 Trail Running ShoeSupra Scissor Mens Olive Black Mesh & Suede TrainersMan's/Woman's NEW Piper Pompom Black Sandal Exquisite (middle) workmanship Elegant and sturdy packaging Different goodsJenny by ara Women's Ruffina 52793 Mule Navy Nubuck Mules , Sol Sana Joyce Heels size 36 BRAND NEW RRP: $179.95Elegant Floral Pearls Peep Toe Leather T-Strap High Block Heel Women Shoes Zhou8 , Banana Republic Jackie Heel Sandals, Black SIZE 9.5 (E25) , Womens Dolce Vita black leather ankle strap sandals/ shoes sz. 6 M NEW! , Pleaser 5" Heel, 1/2" PF Wrap Around Sandal Adult Women Sandals Cheetah Satin , FRYE Women's Miranda Gladiator Platform Sandal White Leather & Cork 7.5 MK-Swiss Gallium 01512610 Sneakers Low Shoes MenNEW 2018 NEW BALANCE 574 SL SPIKELESS GOLF SHOES MEDIUM 8.5 , Adidas BUSENITZ Black Royal Blue Skateboarding Discounted (316) Men's Shoes , Nike Hypervenomx Pro IC Men's Indoor Soccer Shoe 749903 480 Size 10NEW PUMA BIOWEB ELITE LTD Men's Running Shoes Size US 9 , DIADORA N9000 MADE IN ITALY MARINAR REPUBLICS limited edition casual stroll , Nike Alabama Crimson Tide Free Trainer V7 Week Zero NCAA AA0881 603 SIZES2017 Nike Air Max 97 Plus Engine 1/Shock Orange/Black Running Shoes! Size 8Men/Women Shoes adidas Nmd_R1 Black Men B42200 Good world reputation Modern and stylish fashion As of the latest modelNIKE AIR MAX 1 ROYAL 847671-221 linen/linen-summit white Size 12Jordan 1 Retro High Flyknit BRED 919704 001 US SZ 10 , Balenciaga Men's Red Arena Leather Sneakers High-top sneakers sz 41 / 9 USMen Kenneth Cole Shoes SAND SANDAL Flip-Flops Brown Size 10 , Adidas Element Urban Run Women's Running Training Shoes Pink White M29301 , Skechers Unity Beaming Womens Slip On Sneakers- Select SZ/Color. , K-SWISS - SNEAKERS - TONGUE TWISTER - SZ 7 - NWOB - B-SHO-12Nike Air Max 90 Ultra 2.0 BR Still Blue/Polar-White (WS) 917523-400 WM SZ 9 NEW , Not Rated Womens Spiffy Taupe 7.5 M US , KENDALL + KYLIE Brooke Zip Up Ankle Boots, Dark Purple, 9 US , Ava & Aiden Mika Knee High Boot Chocolate Leather Size 8 - NEW
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05 - 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.

    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05 - 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
    adidas Casual Originals Stan Black Smith Floral Black Men Classic CQ2197 Casual Shoes Sneaker CQ2197 f6dfa05
    Athletic Shoes
    >
    ;