Never miss an update

Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9




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
Color: Pink Style: Running, Cross Training
Brand: Nike
Never miss an update

Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9 - blurrypron.com

    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9
    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9
    NIKE AIR VAPORMAX PLUS “VOLT” 2018 ITEM NUMBER 4581-14Jordan Air 1 Retro High Elephant Print Black/Gym Red Basketball Shoes Men's 10.5 , NIKE KOBE XI ELITE LOW 4KB SZ: MNS 8NIKE AIR JORDAN 12 XII RETRO THE MASTER 130690-013 Flu Game Taxi Playoff Cherry , Kobe Hyperdunk Supreme Milan DS Size 9.5 Style 333373-613 , USED AIR JORDAN XI WHITE BLACK CONCORD 2000 RETRO sz 9 space jam v iv x xiNike CJ81 Trainer Max shoes/sneakers, size US Men 10.5, with Transformer FigureMens Nike KD VII 7 PRM White Metallic Gold Pink 706858-176 Aunt Pearl WingsNike Air Jordan Retro IV 4 Laser White Chrome Metallic Silver 3M 30th LS LimitedNIKE MAGISTA OBRA 2 ELITE DF FG [AH7301 107] FOOTBALL FIRM SOCCER CLEATS SZ 7Man's/Woman's yeezy 350 v2 triple white cream Special price Has a long reputation Cost-effective , 2013 Nike Dunk Low Pro SB BLACK WHITE ICE BLUE CONCORD PURPLE 304292-043 NEW 12Man's/Woman's jordan Retro international 5 Year-end special promotions Comfortable touch Preferred boutiqueNike KD 7 N7 Kevin Durant KD VII N 7 Style 705135 486 Size 9.5 Men'sGentleman/Lady air jordan 13 retro low High security low cost classic styleNike Air Jordan Retro 5 Stealth Blue 136027-142 Size 11 White Sport Royal 2006Air Jordan 11 72-10 1 2 3 4 5 6 7 8 9 10 12 13 DB gold bred toes yeezyAir Jordan 6 “Tinker” Size 13 *Confirmed* , Air Jordan 13 Retro Low "Bred" - 310810 027ASICS GEL LYTE V 9.5 WOODLAND CAMAO BLACK WHITE TQK536-8890. JAPAN. H54AK-8890Man's/Woman's Nike Kyrie 4 Kix Size 12 Selling Sales Italy Popular recommendation , 2002 NIKE AIR JORDAN VI 6 RETRO LOW WHITE UNIVERSITY BLUE BLACK 304401-141 DS 11Adidas Ultra Boost 1.0 Wool Grey Silver S77510 LTD Size 15NEW MEN'S,NIKE KOBE BASKETBALL SHOES LEATHER US:IX MID EXT QS704286-001 B/B S.11 , Nike Air Jordan 3 Retro III Katrina Hall Of Fame Shoes136064-116 Men's Size 9 , NIKE AIR MAX PLUS Tn MENS COMFY SHOES PREMIUM LIFESTYLE CASUAL SNEAKERS , NIKE KOBE X 10 ELITE LOW RIVALRY CHESTER CHEETAH 747212 818 US MENS SHOE SZ 9.5Nike Dunk High SB Twin Peaks Night Owl Black 313171-006 9.5 Size 8.5VTG Nike Air Foamposite Pro Black Medium Grey 2002 sz 12
    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9 - blurrypron.com>Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9 - blurrypron.com
    Ellie Women's Boot in Leather Look BlackLadies Rieker Slip On Casual Shoes, L3272Man's/Woman's HEPBURN-26 PU Black Comfortable feeling Orders are welcome have fun , Gentleman/Lady Flat LifeStride Indira Black Various styles Stylish and charming classic style , Womens Office Ladies Pointy Toe Slip On High Heels Suede Party Stilettos Shoes , GH Bass Reese Womens Black Strappy Heels Size 6 , Gentleman/Lady Christian Louboutin Daffodile nude 38.5 Crazy price Modern design TRUEKEEN Women's Dark Blue Athletic Sport Sandals Waterproof Hiking Size 7.5 , L'AUTRE CHOSE women shoes Camel suede T-strap sandal with gold-tone metal LDA649Nike Air Zoom Talaria '16 OG WOLF GREY US MENS SHOE 844695-003 Size 11 , Reebok Men's Work N Cushion 2.0 Walking ShoeMens Puma Sneakers Tsugi Blaze Lightweight Training Fitness Shoes - Light GrayMizuno 410991.9074 Wave Rider 22 Black Gold Men's Running ShoesLimited Edition John Varvatose Textile Converse All-StarConverse Fastbreak x Jordan UNC size 10. North Carolina. White Blue. 917931-900.DB2570 NIB ADIDAS NMD R2 CNY ORIGINAL CHINESE NEW YEAR BOOST RUNNING SNEAKERS 6Nike Air Jordan 8 VIII Retro Aqua SZ 14 Black True Red Bright Concord 305381-025Shoe Man Artisan Antica Sartoria Napoletana Art. A103/LN Suede skin BeigeCole Haan GrandEvolution Wingtip Oxford Men Size 12 Brandy Brown C26314Merrell Men's Jungle Moc Nubuck Slip-On ShoeBrown Nubuck7.5 2E USDaniele Alessandrini Shoes Sneaker -40% MADE IN ITALY Man Blue F7129KL4363600-23 , Mephisto Mens Brown Casual Runoff Shoes Oxfords Size 13 Excellent!Imperial Florsheim Brookfield Slip On Bit dress shoe Mens handsewn 12110-001New Skechers Flex Appeal Arctic Chill Womens Slip On ShoesACNE Off White Leather High Top Sneakers Trainers Boots Shoes UK7 EU40 US10 , Man/Woman Bogs Arcata Sripe Boot - Women's Diverse new design discount price high quality productSkechers Women's Work Relaxed Fit Ghenter Bronaugh SR Sneaker , MINNETONKA DOUBLE FRINGE BLACK SUEDE BOOTS SZ 6 WITH JOE BOXER MATCHING PURSE , PLEASER Sexy Stripper 5" Heel Matte Black Thigh High Boots SED3010/B/PULifeStride Womens Xandy Almond Toe Knee High Fashion Boots ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9 - 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.

    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9 - 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
    Nike Air Vapormax Flyknit 2.0 Diffused Taupe Flyknit 942842-201 Navy 4380 Pink Men's Running 942842-201 e59f8e9
    Athletic Shoes
    >
    ;