Never miss an update

Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639




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: Sesto Meucci
Color: Brown Style: Loafers & Moccasins
Pattern: Solid Width: Medium (B, M)
Never miss an update

Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639 - blurrypron.com

    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639
    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639
    Men's/Women's LANVIN Shoes 827025 BeigexMulticolor 39 Good design a good reputation in the world business , Women sandals leather model NINA BLACK Us 3 to 12 , Women shoes ballerina leather model FEDOR Us 3 to 12 , Gentlemen/Ladies Selo Sandal Packaging diversity Strong value a wide variety of goods , Women ballerina leather and batik model ALBIE Us 3 to 12Women shoes ballerina leather model HADIF Us 3 to 12Man/Woman Pasha GROOTE crystal jeweled leather sandals quality Ranked first in its class Modern mode , MANOLO BLAHNIK Shoes 406230 Brown 37 1/2 , Women's shoes sandals leather model LAYLA Us size 6 and 8.5 , JIMMY CHOO Shoes 893827 Black 37Gentleman/Lady ADEAM Shoes 330038 Black 37 Quality queen The latest technology Full range of specificationsSteve Madden Womens Briele Fabric Open Toe Casual Slide, Black Leather, Size 7.0JIMMY CHOO Shoes 695660 Yellow 35 , Manolo Blahnik Giraffe Print Pony Hair Sandals (Size 36.5)Drew Women's Cascade Sandal Sand Nubuck SandalsWomen sandals snake leather model HANAN Us 3 to 12 , Badgley Mischka Women's Sarah Wedge Sandal Nude Size 10.0 , Men/Women Pasha CORINTH crystal jeweled leather sandals Comfortable feeling modern Fair price , Gentlemen/Ladies CELINE Shoes 525054 BeigexMulticolor 35.5 Packaging diversity a wide range of products Comfortable and natural , Women sandals leather model ZILLA Us 3.5 to 12 , Emanuela Caruso Capri New With Box Catena Sandal Black/Gold , Women sandals leather model BASHIRA Us 3.5 to 12 , Women sandals leather model GLADIA Us 3.5 to 12 , Christian Louboutin Shoes 591295 Black 37 1/2 , Women sandals leather model RAONI Us 3.5 to 12Women sandals suede model IFFAH Us 3.5 to 12Stuart Weitzman Womens Sundry Peep Toe Special Occasion, Naked Suede, Size 9.5 , Women’s sandals suede model SALLY by HGilliane Design Us 3.5 to 12 , Women sandals leather model IAMAR Us 3 to 12
    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639 - blurrypron.com>Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639 - blurrypron.com
    Womens Hunter Original Short Gloss Wellingtons Snow Winter Rain Boots US 5-11NewRock New Rock 107 S3 Black Skull Devil Biker Gothic Punk Platform Boots , Verdemax 2728 Size 44 Adult High Boots , Nike Free Rn Motion Flyknit Size 10 Like New Condition Barely Worn Blackwomens yellow short leather fringe boots size 37Badgley Mischka Carley II Gladiator Wedge Sandals 029, Silver, 7.5 USWomen Girl Crystal Diamond High Heel Peep Toes Sandals Lady's Summer Shoes , women steve madden red shoes, guess shoes size 7 , $325 CYNTHIA VINCENT REMI Bronze Multi Leather Designer Strappy Sandals 103.1 Phillip Lim Shoes 023254 Pink 36 1/2B.O.C Womens Douala Leather Open Toe Casual Platform Sandals Black Size 7.0 a8Man's/Woman's Enzo Angiolini Women's Jaydra Gladiator Sandal Selling Primary quality Breathable shoesMr/Ms LES TROPÉZIENNES Baiman Marine Multi Durable service Cheaper than the price Strong heat and heat resistance , Man's/Woman's Donald Pliner Giles Patent Wedge Sandal High grade Sufficient supply Simple , NWT Crocs Women's casual comfort Mabyn Slingback Mini Wedge bronze brown 8 WIDE , Vans Authentic Womens Black Outsole True White Canvas Skate shoes Size 9 NWTWomen sandals leather model GHOZI Us 3.5 to 12 , Skechers Sport Women's Breathe Easy Lucky Lady Mary Jane FlatBlack Knit Mesh/...CONVERSE CHUCK TAYLOR ALL-STAR II KNIT OXFORDS RED BLACK WHITE 151090CADIDAS EQT 93 PK S79136 equipment training torsion support primeknit Pharrell 12 , Nike KOBE IX 9 EM EASTER Elite Turbo Green Lucid Volt Men's Sz 14 646701-300Reebok CN1022 Mens Crossfit Nano 8.0 Flexweave Cross Trainer- Choose SZ/Color.puma HYBRID ROCKET RUNNER new style shoes 19159202Cole Haan Mens Aiden Grand Penny II Formal Loafer Shoes, British Tan, US 11.5 , Men's Dress Multi Color Oxfords Brogues Wing Tip Carved Flat Splice Formal ShoesPuma Fierce Krm Womens Trainers Slip On Dance Shoes Textile Mesh 189866 01 D46 , Puma Creeper Velvet Puma Black/Black 364466 01 Women's , Man/Woman ORPHIC Shoes 767045 Beige 23.5cm Cheap online shop Easy lifeCOMME des GARCONS COMME des GARCONS Sneakers Size 2(US 6.5)(K-53219)Skechers Performance 14620 Womens on-the-Go City 2- Winter Boot ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639 - 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.

    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639 - 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
    Men/Women Sesto Meucci Women's Geppy Flat First Sandal Fine Women's Global workmanship First batch of customers Global sales 44c8639
    Sandals
    >
    ;