Never miss an update

NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358




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: LIGHT BONE/ROSE GOLD/WHITE Style: Running, Cross Training
Product Line: Air Max 1
Never miss an update

NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358 - blurrypron.com

    NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358
    NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358
    Skechers Performance Womens Go 2-Spark Walking Shoe- Select SZ/Color. , Adidas Originals W Tubular Shadow Knit Navy Blue Black BY9740 Women sz 9.5 Shoes , Gentleman/Lady Air Jordan 1 Girls Comfortable feeling auction Known for its beautiful qualityNEW Women's Adidas Tubular Shadow Shoes Size: 7.5 Color: Gray/WhiteNike Air Zoom Structure 20 Women's Running Shoe 849577 004 Size 5.5NEW Vans Slip On Star STARS Print Perf Perforated Skate Womens Mens Shoe Black , WOMEN'S UNISEX SHOES SNEAKERS ADIDAS PHARRELL WILLIAMS TENNIS HU [BY8715]K SWISS LIMITED ID DEBBIE SPECIAL ORDER SIZE 6-SHOES-RED-YELLOW-BLACKNew Merrell J12558 Agility Peak Flex 2 Blue Women's Hiking Trail Shoes 9 USUnder Armour Burnt River Low 2.0 Green Women's Size 7 SMS Sample Shoes Hiking , Allen Iverson Answer REEBOK QUESTION MID WHITE PINK SHOES USA 7 , New Merrell J12552 Agility Peak Flex 2 E Mesh Black Women's Running Shoes 11 US , NIKE AIR HUARACHE RUN TRAINER WHITE/RADIANT EMERALD SIZE WOMEN'S 6 [634835-107]BROOKS RAVENNA 4 MEDIUM B WOMEN'S RUNNING SHOES 100% AUTHENTICWomens ECCO TAUPE Leather fashion Sneakers sz. 42 EUBrooks Womens Ravenna 2 Running Shoes 6.5BNike Free TR Focus Flyknit Women's Training Shoe 844817 002 Size 6adidas Originals Pink Women's Swift Run W Size 7 NWBUnder Armour UA Women's Block City Volleyball Shoes White 1290204 100 Size 5.5 , New Adidas Adipower Boost Boa Golf Shoes Sz 10 WMNS Purple White TW Q44291On Cloudsurfer Women Size 5.0 Pink Running Rare New Authentic2014 Nike Force Sky High White/Metallic Silver High Heel Trainers! Size 9Elie Tahari Women's Vesuvio Fashion Sneakers White/Platinum Size US 6.5/WOMEN'S UNISEX SHOES SNEAKERS CONVERSE ALL STAR HI [M3310]ADIDAS WOMENS EQT RACING ADV PRIMEKNIT - BLUE TINT/GREY CQ2240NIKE SAMPLE HUARACHE US WMNS 7 [634835 407] LIGHT BLUEAdidas Supernova Glide 7 Running Shoes B40368 Sneakers Sport Athletic Purple , Nike Lunartempo 2 Size 11.0 Woman Chalk Blue RunningComfort Stylish NewMen's/Women's puma suede platform gold size 9.5 Crazy price Pleasant appearance Known for its excellent quality
    NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358 - blurrypron.com>NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358 - blurrypron.com
    Kelsi Dagger Brooklyn Women's Houston Fashion BootTrespass Gwendolyn Women's Multisport Outdoor Boots US 9 REF Da116* , Womens grey New Balance classics size 7Ladies Black Suede Leather Clarks Smart Casual Slip On Dolly Shoes Medora FrostMen's/Women's Ladies Padders Ankle Boots Shona excellent quality Win highly appreciated classic styleMen's/Women's I35 FrankII Buckle Riding Boots, Black/Cognac Year-end special promotions Elegant and sturdy packaging cheaper , ARRAY Womens Freedom Leather Square Toe Loafers , Gentlemen/Ladies Tahari Women's Ta-Paulina Packaging diversity Modern design Reliable reputationDVF Diane Von Furstenberg Siracusa Powder Suede Women's High Heels Sandals US 7Naturalizer Elly Womens Comfortable Fashion Flat Leather Loafer ShoesBadgley Mischka Sadie Heels - Women's Size 9 - WhiteClarks Women's Delana Fenela Dress Sandal IR 0768 , Mr/Ms Dyeables Lotus - Color - Black Comfortable feeling excellent Modern and elegantVIONIC Black Slide Sandals Libbie Wedge Heel size 9 , Nike Men's Free Train Versatility Ankle-High Cross Trainer Shoe , Nike Air Max 1 Ultra 2.0 Essential Running Shoes Tumbled Grey 875679-003 size 10Under Armour UA Charged Phenom 2 [1274404-008] Men Training Shoes Black US 10.5Man's/Woman's Nike Air Jordan Flint 13’s Louis, elaborate Has a long reputation Elegant and robust menuAIR JORDAN FUTURE BOOT SZ 10 GROVE GREEN 854554 300Zara Man Deportivo Trainers Black Embossed Sneakers Size 8 MensInvicta Womens Angel Quartz Stainless Steel and Leather Casual Watch, Color:Blue , Skechers Go Walk 4 Select Walking Women's Shoes Size 8 , Men Vionic Orthaheel Adler Slipper 566ADLER Chestnut Suede 100% Original NewNike Free RN Purple Dynasty/Volt-Black 831509-501 Women's SZ 6 , Women's Hoka One One Vanquish 3 Running Shoes Blue Radiance Neon Coral Sz 10.5 , New Mizuno 410990.5Z17 Wave Rider 22 Blue Atoll Women's Running Shoes 8.5 US , Man/Woman ARMISTICE Stone One Comet Rose Doré Fine processing Elegant style King of the crowdAsics Women's GT-1000 5 Running Shoes, Indigo Blue/White/Safety Yellow,Size 10.5J Crew Parker 7.5 Brown Distressed Vachetta Leather Tall Harness Boot 03010 $358 , Stetson Burnished Brown Western Cross Studded Leather Cowboy Boots Women’s Sz 7
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NIKE NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358 - 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 NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358 - 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 NIKE AIR BONE/ROSE MAX 1 SE ULTRA SE SHOES LIGHT BONE/ROSE GOLD/WHITE BRAND NEW (861711 001) 7277358
    Athletic Shoes
    >
    ;