Never miss an update

New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070




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
Brand: Nike Style: Running, Cross Training
Product Line: Nike Air US Shoe Size (Men's): _
Model: Nike Air Huarache Color: Black
Never miss an update

New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070 - blurrypron.com

    New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070
    New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070
    Asics X Packer / J.Crew “Navy Buck” BNIB DS 10 Gel Lyte III GLIIIKith Adidas Response TR KITH Trail Boost DS New Size 12 BB7364 + ReceiptNike Air Trainer Sc 2 Lime Green Og Qs 11,5 Us 45,5 Eur Ds Off White Tz , Air Jordan 5 Retro: Olympic Gold: Size 12: New: 100% Authentic: Priority Ship , NIKE AIR MAX 90 INFRARED OG REACT Atmos supreme sz 12.5DS Titolo x Asics Gel Lyte 3 Papercut 25th Anniversary ronnie clot supreme kith2008 Nike Blazer SB PAC MAN Size 8.5 bright citrus supreme gold box 310801 031 , Asics GEL-Kinsei 6 [T644N-9790] Men Running Shoes Carbon/Black-BlueNIKE SF AIR FORCE 1 MID MEN's CASUAL DESERT MOSS - GUM MED BROWN AUTHENTIC NEW , Adidas Yeezy Boost 350 V2 Triple White *NEW IN BOX* 11.5 ***100% Authentic*** , Nike Air Max LEBRON IX 9 AS GALAXY ALL-STAR BIG BANG ORANGE GREY 520811-800 11 , NIKE AIR ZOOM MARIAH FLYKNIT RACER RUNNING DEEP BURGUNDY - PLATINUM - TEAM RED2007 Nike Air Jordan Retro 5 Low University Blue RARE Mens Size 8.5 Womens 10 peJordan Wolf Grey "UNC" 12 DS!! With receipt!Rare Ascis Low Top Japan Blue/Orange size 10 EL310Man's/Woman's Air Jordan Retro 8 Aqua economic special function Breathable shoes , Nike Air Max Plus QS -SIZE 12 - 903827-700 TN Tuned Metallic White OG Bullet Red2010 Nike Air Jordan IX 9 Retro WHITE BLACK UNIVERSITY POWDER BLUE 302370-103 11Shoes EA7 Emporio Armani 7 EA Man X8X004 Sneakers Grey Leather Sport Logo F/W 18 , Mens Air Jordan Black Cat Bred Black University Red Emerald Rise AR0772-006 , ADIDAS X WHITE MOUNTAINEERING EQT SUPPORT FUTURE 7-13 BB3127. WM 93/17 BOOSTAIR JORDAN RETRO 6 384664 061 VARSITY RED 2009 SIZE 11.5 , Nike Air Zoom Spiridon '16 White Grey Silver 849776-100 8-13 max 1 og flyknitNike Kobe Hyperdunk '08 FTB Size 11.5 Fade To Black Stealth Cool Grey 869611 001 , Man's/Woman's Air Jordan 11 72-10 Size 11 Good world reputation Fast delivery SimpleNike Air Jordan 3 III Retro True Blue 2009 Cavs Bred Cement Fear Pack GMP Sz 12 , Adidas Mens NMD R1 Nomad bb2885 RED black white core runner Boost ultra LimitedNike Dunk High SB x Premier Win Some / Lose Some - Special Premier Box , NEW NIKE AIR MAX 90 NIC QS INTERNATIONAL FLAG WORLD AO5119-100 MEN 6 WOMEN 7.5 ,
    New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070 - blurrypron.com>New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070 - blurrypron.com
    Bogs Women's Neo-Classic Linen Tall BootVince Camuto Women's KARINI Ankle Boot - Choose SZ/Color , $675 NIB STUART WEITZMAN Black Velvet LOWJACK Block Heel OTK Boots 8 / 38 , Men's/Women's Corral Ladies Black/Tan Distressed Boot E1037 wholesale delicate Current shape , NEW FREE PEOPLE AS 98 TATUM BROWN SUEDE MOTO OVER THE KNEE BOOTS US 7Man/Woman Clarks SANDAL LEATHER mod. VIERI Brown Easy to clean surface Price reduction Complete specifications , Ladies Cloudsteppers by Clarks Mule Slip On Shoes The Style - Sillian FreeAlexander Wang Sandrah Calf Leather Platform Size 38 , Blue cage stiletto high heels, EU Size 40, Blue High Heels, Cage Heels, , 6D10 Patricia Green Carrie Loafers Slip On Moccasin Women Shoes Sz 8.5M (6.5M) , Authentique mocassin cuir crin poney 36 Giuseppe Zanotti I26088 valeur NEUF$595 NIB Salvatore Ferragamo Varina Bow Bianco Nappa Flats Shoes Black White 8 , Via Spiga Women's Heels Size 8 Black Suede Pointy Toe Slim High HeelPleaser Pin Up Girl Shoes 7 Women Red Cream Rockabilly Tattoo Print Bow StilettoJCREW LEATHER HIGH-HEEL SANDALS WITH CONTRAST STRAP SIZE 5.5 BLACK F1409 SOLDOUTGentlemen/Ladies SLAY-301 bargain Elegant and sturdy packaging Characteristics , Irregular Choice Love Me Not Black Red Womens Court Shoes , Jimmy Choo Glitter Lang Lame Sandal, Navy, Size 39.5 (US 8.5) , Adidas B42656 Women Alpha Bounce RC Running shoes black white sneakers , Via Spiga Pacifica Platform Sandal Black Women's Size 8 M US - MSRP $ 225 , Adidas D Lillard 2 Boost SNAKE Black Burgundy Maroon Red Gum 18 Basketball Shoes , Shoes DC Shoes Heathrow Vulc Black Men ADYS300443-BKW , Nike Zoom KD IX 9 Flyknit UNLIMITED Multi Black Green Durant 843392 999 Size 10 , Adidas NMD R1 Bedwin & The Heartbreakers Black BB3124 SZ 6.5 NEW , NIKE DUNK PRM HI UNDFTD SP "UNDEFEATED" 598472-220 dark Size 11TODS MADE IN ITALY MENS OXFORD BLACK LEATHER BROGUE WINGTIPS SHOES SZ 8Nike Roshe One Premium Suede Women's Shoes Navy/Metallic Blue/Sail 820228-400 , WMNS Nike Waffle Racer Retro Shoes Black White Khaki SZ 5.5 ( 881183-001 )Skechers Women's D'Lites New School Sneaker Dark Taupe Fitness Shoes , Women's Over Knee High Boots High Stiletto Leopard Pull On Pointed Toe Roman Hot ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070 - 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 NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070 - 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 NIKE 26145 AIR MAX '97 | - Orange/White T8437001 Just Do It MEN'S Black/Total Orange/White | JDI 1db3070
    Athletic Shoes
    >
    ;