Never miss an update

NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff




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: Nike
Color: RED Width: Medium (D, M)
Material: Suede / LEATHER Style: Athletic Sneakers
Never miss an update

NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff - blurrypron.com

    NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff
    NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff
    NIKE SB ERIC KOSTON HUARACHE 705192-441 BLUE FORCE LAGOON WHITE DS SIZE: 9.5Vans Slip On Style 47 V Dx Size 9 Men Color Burgandy$129 NIB Men's New Balance 999 Re-Engineered MRL999CC Shoes 311 530 , Brooks Ghost 9 Blue Orange Running Athletic Shoes Mens 11.5 D Style 1102331D442 , ASICS T811N.9790 GEL-FlUX™ 5 Mn's (M) Carbon/Cherry Mesh Running ShoesNew in Box New Balance 1701 Mens Leather Golf Shoes NBG1701 Size 10 Black , Man/Woman Nike Air Woven Sneakers online sale comfortability Highly appreciated and widely trusted in and outConverse Chuck Taylor All Star Low Canvas White Grey Men Women Shoes 159522CHi-Tec Men's V-Lite Walk-Lite Wallen Walking Shoe, SKU 54106, Size 9.5Mizuno Wave Inspire 13 Men's Running (Size 8) 410875.7S73 Blue Silver BlackNIB New Balance MEN'S 620 v2 Extra Wide 4E TRAIL RUNNING SHOES 412 612 610 669 , Brooks Regent 1102051D456 Navy/Light Blue/Silver Running Shoes Men's Size 8 $134Globe Skateboard Shoes Los Angered Black FGNew Balance Men's Fresh Foam Zante v4 MZANTBN4 Deep Porcelain Blue-PigmentMens New Balance Sneakers 574 US Size 14 Medium Black & Gray , NIKE ZOOM STEFAN JANOSKI SB 333824-090 BLACK WHITE DARK DUNE SIZE: 10.5Brooks Heritage X Men's City Regent Sneakers Running Shoes Orange Grey Size 7.5Wei-Rui Warrior New Weightlifting Shoes - Size 44 EUR / 10 USOn Cloudflow Mens Shoes Size 12.5 Black/Asphalt Swiss Engineering - ExcellentMan/Woman Nike Blazer High Quality products Preferred material Selling new products , NIKE HYPERVENOMX PHELON 3 DF IC LOW SNEAKERS MEN SHOES 917768-616 SZ 10.5 NEW , Adidas Original Tubular Shadow Boys' Grade School , Nike Metcon Repper DSX Size 11 M (D) Men's Training Shoes Black 898048-003Nike Men's Train Speed 4 AMP UNC Tarheels Valor Blue/Wht NE844102 414 NEW sz 9Nike Air Flight One Penny Hardaway Size 15 , Used Worn Size 12 Nike Jordan XXXI Low Shoes White, Pure Platinum, Silver , Nike Zoom Attero Basketball White Gray Athletic Casual Sneakers Shoes Mens 11Nike Air Zoom Pegasus 33 Mens Grey Blue White Running Training 831352-004 NIBAdidas Copa Tango 18.3 In Soccer Shoe - Mens
    NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff - blurrypron.com>NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff - blurrypron.com
    Mariano Renzi Vero Cuoio Slouch Knee High Heels Boots Leather Brown Size 6 Italy , SAINT LAURENT PARIS BOOTIES  NIB SIZE 38 GREY SUEDE BEAUTIES!Adidas Originals Busenitz ADV C76853 Mens Trainers Sneakers Shoes , Men's Nike Air Force III High Premium (Samurai) 313669-012, Size 9 , FIORENTINI + BAKER black leather 2-strap chunky heeled ankle boots Italian 36Shoes Merrell Concordia Mid J310704C Man Bootie Trekking Expresso RougeNike Air Max 270 Mens Running Shoes Lifestyle Sneakers Pick 1 , Puma Platform Black Gold Rihanna Creeper Style Us Women's 5.5Ladies Remonte Stylish Heeled Ankle Boot D7364 , Bella Vita Leslie Perforated Gladiator Heels, NavyValentino Garavani Rockstud Studded Ballerina Leather Ballet Flat Euro 39.5 , Rockport Total Motion Hidden Wedge Flat - Women's Size 7 W, TaupeWomens Lady real leather rhinestone open toe high heel gladiators sandals shoesCole Haan Womens JULIANA Leather Pointed Toe Dark Silver/Metallic Size 8.0 m05 , Luxury Rebel "Bardot" Peep Toe Platform 38 /US 7.5 M Rose Suede Upper New in BoxCHRISTIAN DIOR Cannage Patent Leather Ankle Booties Size 7Alegria Morgyn Black Patent Leather Buckle Sandals Shoes Size 37 6.5 7 MOR-159Skechers Skecher Street Womens Darma-Engineered Knit Bungee Sneaker , Birkenstock Florida 054741 size 39 U.S.8-8.5 R Red Birko-Flor SandalsNike Air Force 1 Hi Utility Khaki/Khaki-Light Bone AJ2775-200 Women's SZ 11 , New Nike Dunk Low Flyknit Men's Size 14 Black Chlorine Blue White 917746-001 , Adidas Originals Tubular Shadow Night Cargo Black Camo CP8682 Men , Under Armour Mens UA Micro G Torch Sneaker D (M)- Pick SZ/Color.Man's/Woman's NEIGHBORHOOD I-5923 SHOES Size 9.5 Many varieties excellent Valuable boutique , DR MARTENS 13733201 MEN'S HOLKHAM SD BROWN GAUCHO BOOTS SIZE 10 NEW IN BOXBally Paco Brown Cap Toe Balmoral Men's Size: 11D , Rockport Men's Style Purpose Wing Tip - Choose SZ/Color , Katy Perry The Heart Fashion Sneakers 684, White, 10 US / 40.5 EU , Women's Nike Air Max+ 2013 Club Pink Silver Running Shoes sz 8.5women's shoes MBT 7 / 7,5 () sneakers brown leather dynamic BY721-38 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIKE SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff - 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 SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff - 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 SB ERIC KOSTON 2 TEAM PREMIUM TEAM RED 2/ KOSTON TEAM RED-LIGHT ASH GREY d7ce1ff
    Athletic Shoes
    >
    ;