Never miss an update

NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03




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: Steven by Steve Madden
Color: Black Style: Open Toe
Heel Height: High (3 in. and Up) Width: Medium (B, M)
Material: Nylon
Never miss an update

NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03 - blurrypron.com

    NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03
    NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03
    Womens 12cm high block heel pointy toe shoes side zipper boots leopard printFolk Womens Mid Block Heels Pumps Lady Slip On Embroider pearl Strap Vogue ShoeNaturalizer Black Slingback Pumps 2.25" Heel Women's SZ 6M Comfortable , Chic women's wedding Bridal rhinestone pointy toe ankle strap bridal shoes pump , Fashion Buckle Beads Womens High Block Heels Leather Slip On Autumn Ankle BootsWomens Pointy toe High Heel Stiletto Patent Leather Shallow Pumps Dress Shoes SZ , Elegant Womens Med Stilettos Heels Sandals Pearls Suede Pumps Pointy Toes Shoes , BORDELLO Shoes Concealed Platform Mary Jane Pump Cream Accents TEMPT-07 Black PUWomen's "STEVE MADDEN" Open Toe Chunk Heel Black Patent Leather 9 Med. NWB Nice! , Mephisto Womens Size 8 Black Suede Leather Heeled Loafers Comfort Dress ShoesPLEASER Ankle Strap Sandal Skull Cross Bone Cut Out Platform MOON-709SK Black , DVF DIANE VON FURSTENBERG Tan Chocolate Spotted Dion Wedge Sandal 10 $228Womens Leather Square toe Pull on High Block Heel Shoes Party Work Formal PumpsWomens Low Stilettos Heels Pointy Toe Slip on Leather OL European Pump Shoes , L.K. BENNETT PUMPS HEELS Size 42/10-10.5 Suede Leather Burgundy Black Worn 1-2 , womens wedding Floral rhinestone pointy toe ankle strap slim bridal shoes pumpsNine West Womens Margot Suede Pointed Toe Classic Pumps Pink Size 5.0 nMpa , $215 ISAAC BAMBI Dark Brown Suede Designer Classic Heels Round Pumps 6 , Steve Madden Womens Wails Leather Closed Toe Ankle Strap Black Suede Size 7.0Womens Gladiator Summer Knee High Boots High Heel Stiletto Hollow out Shoes SizePin Up Couture SMITTEN-20 Women's Green Vintage Retro Dressy Pin Up Mary Jane , Elegant Women Square Toe Block Heels Slip on Flowers Summer Sandals Ladies ShoesNIB DELICACY High-30 Size 6 Red High Heels Stiletto Pumps w 7" Heels NEWBlack Shimmer Women's Prom Homecoming Wedding Bridesmaid Bridal Sandal Shoe M W , sexy womens blingbling rivet studded side zipper stiletto high heels ankle shoes , PLEASER Shoes Sexy Black Glitter Platform Exotic Dancer Stripper 8" High Heel 10 , Dolce Vita Black /Calf Fur Leopard & Zebra Stripe Back Zip Stiletto Heel Sz 7.5 , New LUCKY BRAND Women's White Leather Narnie Platform Wedge Sandals Shoes $79 , Pleaser black leather 5" slip on stripper shoes ,
    NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03 - blurrypron.com>NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03 - blurrypron.com
    Man's/Woman's Nine West Women's Justus Ankle Bootie Complete specification range Year-end sale fine , Frye MELISSA SEAM TALL Boots Sz 6B Womens black leather riding calf pull on NEWCASADEI Black Boots Size 8.5 RRP$750Lucchese Bootmaker Womens Cl8009.W8 Toe Cowgirl Boot Silver Leather Cowboy Boots , MENS REEBOK CROSSFIT NANO 7.0 MEN'S GYM TRAINING/RUNNING/FITNESS SHOES , Salomon Speedcross 4 Poseidon | Eggshell Blue | Black , Tommy Hilfiger Spy Yellow Summer Low Shoes Slippers Ballerina Size 37 , Roger Vivier Black Suede Gomette Flat Size 36.5Badgley Mischka Vision Platino Metallic Suede Women's Fashion Heels Pumps 7.5 M , Schutz 1723000503FC Womens Printed Pump- Choose SZ/Color. , Nando Muzi Women's Open Back Boots Heels Shoes Size 8 US, 38 EURO Retail $700 , STUART WEITZMAN SOHOJUTE SUEDE WEDGE SIZE 10 , Adidas Men's Crazylight 2.5 Active Ankle-High Basketball Shoe , Men's/Women's Pacific Trail Cinder Running Men's Shoes We have won praise from our customers. Carefully selected materials Extreme speed logistics , Nike SB Blazer Mid XT Dark Team Red White Sz 11 876872-619adidas Matchcourt mid - Burgundy - Mens , Nike Roshe Tiempo VI FC 6 men lifestyle casual sneakers NEW black 852613-002Adidas Ultra Boost Uncaged Grey Size 11 , LEHIGH BLACK LEATHER SAFETY WORK BOOTS MENS 8.5 M BIKER MOTORCYCLE STEEL TOE , Ariat Men's Sierra Wide Square Steel Toe Work Boot, Dark Brown/Pine Green, 7.5 D , Mens Faux Suede Sneakers Athletic Sport Traineres Running College Boots Shoes , Hugo Boss Flanac Navy Slip On Loafer Men's US 10 (J,1)Mezlan Men's MONEO II Designer Dress Suede Sneakers 6262-1 Handmade in SpainBlack & White Lanvin Printed Pony Hair Sneakers , Baffalo London Women's Shoes Sneakers - BFL1339-14 | Beige , Franco Sarto Chandra Women Black Leather Wide Calf Knee High Riding Boots 5.5 , HARLEY DAVIDSON Womens Motorcycle Boots Size 6 84187 Ashby Black Leather Zip , NEW COLUMBIA SPORTSWEAR WOMEN'S BUGABOOTOO WATERPROOF BOOTS ~ SIZE USA 10 , LUCCHESE CLASSICS L5505 Handmade Brown Goat Leather Cowboy Boots Women's Sz 7B , I35 Everleeh Fringe Wedge Pointed Toe Slouch Boots, Black, 8.5 US Display
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    NEW! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03 - 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! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03 - 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! NIB Steven by MADDEN STEVE MABLE MADDEN Black Nylon mogochinese-29895 MABLE Peep Toe Dress Pump Heels $109 47d5c03
    Heels
    >
    ;