Never miss an update

NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329




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: Converse
Color: Black/PURPLE Style: Fashion Sneakers
Never miss an update

NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329 - blurrypron.com

    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329
    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329
    AW2 Adidas Outdoor Terrex GTX Trailmaker Shoe Trail Running Women 7 YellowNEW LAUREN RALPH LAUREN JOLIE NAVY SNEAKER SHOES WOMENS 6 CANVAS FREE SHIPWomens Brooks Caldera Cushioned Light Trail Running Athletic Shoes Size 6.5 , NEW Sz-7 Youth=Womans 8.5 Nike Flex Supreme TR Training/Running Shoe-Black/WhiteGentlemen/Ladies Nike Sneakers Size 7 NWOB!! Consumer first Online export store Easy life , Nike Womens Gray Running Shoes Size 7.5 (24670) , Merrell Womens 7.5 Hiking Shoes Taupe Black Rubber NWT , NIKE DUNK HIGH 325203-001 Silver Glitter METALLIC Hi Basketball Shoes WOMEN 10 , Converse Chuck Taylor Women's Brush Off Leather Ox Sneakers Brand New Size 5 , ZARA NEW AW16 MESH SNEAKERS KHAKI US5,EU35,UK2 Ref. 6708/101 , Women's 10B New Balance Walking Shoes WW928WB2 White/Blue LeatherNWB Altra Women's Provision 2.5 Running Shoe, Shiitake/Poppy Red, 6 M USConverse Women's Chuck Taylor All Star Shoreline Canvas Canvas Slip Casual Shoe , Adidas Originals Iniki Boost Women sz 10 AERO Green White Gum Run Shoes EUC , Reebok memorytech Premier comfort SOUTHRANGE RUN L m44434 Size 6.5 , Merrell sneakers shoes Sea Shore performance EXCELLENT size 9AW16 New Adidas Raven Boost Shoe Summer Trail Running Women 7 Silver & Beige , Marc Fisher Platforms Fashion Sneakers Xena Rose Gold and White US 8.5MERRELLTrail Glove Lightweight Runing Walking Shoe WOMENS Size 9Vintage Endicott Johnson Off White Beige Vegan Cleats Golf Shoes Womens 10 M , inov-8 Women's 5054167442 - F-Lite 235 Standard Fit 5.5 MVans Off the Wall Womens Surf Rata Lo Blue Tan Shoes Size 11 , SPORT BY SKECHERS STROLZ SHOES / NAVY MEMORY FOAM SLIP-ON SNEAKER / WOMENS NWT! , Navy Multi Skechers Women's Performance Slip On Sporty Walking Shoes 12414Women`s Nike Air Max Dynasty 816748 002Taupe Skechers Shoes Women Sporty Mesh Comfort Slip On Sneaker Casual 15496Aetrex Ambulator BV3100 Women's Double Strap Brown Walking Shoe , Apex V952 Double Strap Women's White Walking SneakerSKECHERS WORK Athletics Women’s Shoes, Black, Size 6.5 Wide, Eur 36.5 ,
    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329 - blurrypron.com>NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329 - blurrypron.com
    Women Genuine Suede Sheepskin Mid-Calf Boot Metal Stud Punk Outdoor Motor ShoesAquatalia By Marvin K. Oralie Leather Boot Black Women Sz 10 5186 *El Naturalista Quera Nc54 Womens NC54 Boot /- Choose SZ/Color.Salomon - Men's Speedcross 4 GTX - Medieval Blue/Acid Lime , PLENTY BY TRACY REESE WOMENS WEDGES SHOES DARK ROSE LEATHER SZ 38.5 BNIBBella Vita Geyser Pointed Toe Heels, Black , Stuart Weitzman Black Nappa Leather "Giveable" Ballet Flats SZ 11 , Marc Fisher Womens Sydney8 Leather Closed Toe Platform Black Leather Size 10.0Womens Gold Pointed Toe T-strap Hollow Out Med Slim Heels Stilettos Shoes C528WOMEN VIA SPIGA HEELS PUMPS SIZE 7 1/2 M BROWN SUEDE LEATHER MADE IN BRAZIL , Diane von Furstenberg Lexington Gladiator Leopard Wedges Sandal Size 10 $398 , NIB Tory Burch Ethel Leather Mid-Heel Pump Beige Black Gold 6.5 MNew Balance Men's Vazee Pronto 690 720 Gray Black Neon Athletic Sneakers Size 13Vans SK8 Hi 38 Reissue Moto Leather Black/Blanc de Blanc Men's Shoes Size 8.5Propet Men's Life Walker Strap Sneaker - Choose SZ/Color , Asics Gel Mai Knit Patta Rose Cloud Black Sz 8 NIB HQ721-1790 , ASICS GEL-Quantum 360 Shift MX Men's Phantom/Black 8391690 , Alden Shoes, Indy Boot Size 10.5 Kudu Leather , Florsheim Croquet Venetian Men's Slip On Shoe Navy Leather Upper 12101410 , Salvatore Ferragamo Beige Buc Suede Walking Shoes Size 11.5 D Men'sEastland Men's Seville Oxford - Choose SZ/Color , Man's/Woman's Saucony Womens Prowess Sneaker- Pick SZ/Color. Guarantee quality and quantity special function business , Women Sport Running Shoes Ladies Breathable Walking Shoes Pink Athletic SneakersEasy Spirit Pledges athletic shoe brown leather 9.5 Md NEW , Skechers Performance 14710 Womens Go Step Lite-Persistence Walking Shoe 5 , adidas Originals Women's Superstar Shoes, White/Black/White, (8.5 M US) in FCR , Nike Wmns Epic React Flyknit Copper Flash Orange Women Running Shoes AQ0070-800Jessica Simpson Size 5.5 Brown Leather Ankle Boots New Womens Shoes , Preowned Women's Size 7 KEEN Hiking BootsCHLOE Brown Leather Wood Wedge Size 38.5 8.5
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329 - 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.

    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329 - 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
    NEW NEW WOMEN'S 540383C CONVERSE CHUCK TAYLOR ROLDOW ELSIE ROLDOW 540383C BLACK/PURPLE c785329
    Athletic Shoes
    >
    ;