Never miss an update

$63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15




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: Supra NS
Material: Multi Style: Shoes
Color: Blue US Shoe Size (Men's): Varies please check size drop down list
Pattern: Multi Width: Medium (D, M)
Gender: Men
Never miss an update

$63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15 - blurrypron.com

    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15
    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15
    Nike Air Force One Negro League Ethiopian Clowns Leather Sneakers Blue 10.5NIKE Mens Huarache Football Cleats Blue/White 616921-411 Sz 16 , Mr/Ms Adidas ZX flux Great variety Sufficient supply wonderful , CONVERSE CHUCK TAYLOR ALL STAR CT AS OX LIGHT SURPLUS BLACK 155571F SZ 7 , Polo Ralph Lauren Hanford mens shoes boat new canvas blue , 18 Nike Magista Opus SG Soccer Cleats 649233-506 Mens Sz 6.5, 7 (Wmns 8, 8.5) , VANS CALIFORNIA TESELLA SZ 10 BLACK 3D ALOHA VN 0VOAGNEADIDAS ORIGINALS COURTVANTAGE ADICOLOR TRIPLE BLUE S80252 SZ 9Mens Nike Hyperdunk 2016 TB Basketball Shoes Size 10 White Black 844368 100 New2017 Nike Air Jordan Jumpman Team II SZ 13 White Black Varsity Red 819175-101Man/Woman NIKE DUALTONE RACER BLACK/WHITE/DARK GREY 918227-002 Beautiful design Known for its good quality high quality product , NIKE FORCE SAVAGE ELITE TD FOOTBALL CLEATS Orange Cinnabar Wht SZ 12 857063-816NIKE ROSHE ONE PRINT SZ 6 DARING GYM TEAM RED BLACK 655206 606Nike Air Jordan Retro 9 302370-005 Charcoal/Black/Red Mens 9New VANS Mens OTW BEDFORD BLACK / NAVY US M 7.0 - 8.0 VN-0KWAAQA TAKSE , NEW BALANCE LIFESTYLE MRT580TB RE-ENGINEERED BLACK WHITE GREY DS SIZE: 11New Mens 11.5 Converse All Star CTAS Modern OX Porpoise Blue Shoes $100 156650C , SUPERGA Italian 2750 Cotu Classic Navy USAM 3 1/2 USAW 5 EURO 35 MEX 2.5 NWTNEW! Prince WARRIOR LITE Men's Tennis Shoes - Size: 12 , BRAND NEW! NIKE Power Max TB Green White mens size 18 FREE SHIP! , New Mens 13 Converse One Star Player Nubuck OX Black Leather Shoes 153717C $80Nike Free RN Motion Flyknit Men's Running Shoe 834584 600 Size 10.5Adidas Alphabounce LEA Size 7.5 Beige Cream Suede Lux Luxe Running Shoes BY3122Men's Adidas NMD R1 Triple White Monochrome Mesh S79166 - (Pre Owned) , MEN'S NIKE AI TR. V. CRUZ 777535 003 LIGHT BONE/LIGHT BONE BRAND NEW DEASTOCKNIKE PROJECT BA SB SZ 9 BRIAN ANDERSON TURBO GREEN WHITE RUST FACTOR 599698 316MEN'S DR MARTENS COMFORT BLACK CANVAS WALKING SHOES SIZE 9NIKE VERSITILE MEN BASKETBALL SHOE SIZE 10 , Nike Zoom NCS Hyperrev 2015 PRM Men's Shoes Size 10 Net Collectors Society ,
    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15 - blurrypron.com>$63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15 - blurrypron.com
    Gentleman/Lady Lucky Women's Embrleigh - Choose SZ/color Not so expensive Online export store leading the fashion16034 Bottes femme Sendra western country marron série limited. , Muck Boots Womens/Ladies Reign Tall Casual Equestrian Style Boot (FS4309) , British Style Men's Slip On Rivet Korean Casual Pumps Shoes Slip On Casual New*Corso Como--Designer-- "Julia" Gold Leather Flats w/ Pointed Toe-- MSRP $100--6MSperry Womens Firefish Core Slip On 2 Eye Moc Boat Shoes, Linen/Oat, US 8 , Ash Karma Casual Slip On - Women's Size 7.5, BlackMen/Women SIREN HEELS HOT PINK SZ 8.5 Attractive and durable Elegant and sturdy packaging Don't worry when shopping , Twisted X Boots Women's WRSL003 , NIB $498 Elie Tahari Olympia Feathered Tan Suede Open Toe Heels Sandals Sz 39.5Jean-Paul GAULTIER Mesh Pumps Size US 6.5(K-50457)JOE N JOYCE Tokio Elastic Soft-Fußbett Female slip-on shoe Synthetic Creme Sand , Womens Chic Rivet Pearls Metal Chain Peep Toe Block Mid Heels Sandals SlingbacksRetro Womens Wedge Heels Open Toe Mules Slippers Rivets Knitted Sandals Shoes szFiorangelo Leather Italian Sandals Summer New Collection Sizes 5,6,7,9,10,11DC COURT GRAFFIK SE 300927 BLACK/GOLD (204) MEN US SZ 8.5Adidas falcon trainer Men's Size 17 Blue and White Shoes NewADIDAS CrazyLight Boost Black Red Primeknit Basketball Shoes Sneakers Mens 13 , Nike Air Jordan Westbrook 0.2 Mens Hi Top Basketball Trainers 854563 004 SneakerAsics Gel - Lyte V Casual Men's ShoesVans x Van Gogh Skull Classic Slip On Men's US size 7 Women's US size 8.5 , Asics Onitsuka Tiger Mexico 66 OT White Black Men Running Sneakers DL408-0190 , LOTUS OF ENGLAND Men's shoe model WINDSOR 100% Leather Orange/leather , Women’s White New Balance WRT300WM SZ 8.5 Rev Lite Low Top Sneaker SilverEileen Fisher Womens dell Suede Low Top Slip On Walking Shoes, Black, Size 5.5On Womens Cloudster Sneakers Chilli/Curacao Shoe Size 102018 WMNS Nike Air Jordan 1 Retro High Premium SZ 12 White Gold Toe AH7389-107WOMENS BROOKS ADRENALINE GTS 17 LADIES RUNNING/FITNESS/TRAINING SHOES , POUR LA VICTOIRE Designer CELESTE Pointy Toe Nude Suede Pumps Sz 10 , Muck Womens Cambridge Tall Knee High Rain Boot Black Rubber Size 10 M
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15 - 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.

    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15 - 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
    $63.99 Supra $63.99 gingham Assault Supra NS (navy gingham canvas) S02006 3992f15
    Athletic Shoes
    >
    ;