Never miss an update

Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4




Never miss an update

Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4 - blurrypron.com

    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4
    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4
    Firetrap Dr Domello Casual Trainers Mens Wht Fashion Trainers Sneakers Footwear , Dr Martens 3 Hole Keaton Black Steel Toe Cap 14603001 Original Classic Doc , Skechers Go Walk 3 Task Mens Comfortable Shoes/Slip Ons Lightweight/ComfortableMr/Ms Mens Clarks Casual Shoes 'Cotrell Free' Fashion pattern Primary quality uniqueSneakers U.S. Polo - SU29USP10005_SPARE4299S5-C1 Unisex BlackDC SHOES SWITCH S SUEDE BLACK GUM FW 2018 SKATE SHOES 44.5 46 47 NEWMen's Nike Roshe Run Sneakerboot 615601 006 ultralight obsidian casual shoesMen's Sneakers Shoes YAB Running Basso Crosta 2007 Canvas 11 Suede Brown Beige , Dr Martens Doc 10 Hole 1919/7A18 Steel Toe Cap Fine Haircell the Original , Mens Anatomic Casual Slip On Shoes - 'Coari' , Solovair NPS Shoes Made in England 3 Eye Mombasa Shoe S023-L3995MOMMens Clarks Glevo Fly Black Leather G Fit (GO) , DC SHOES MIKEY TAYLOR VULC BROWN SUEDE SHOES NEW FW 2017 40.5 NEW SKATE , ADIDAS CHAUSSURE EXPLORER KNIT - WHTBLK - 7.5 (4059809003329)The Classic Clarks Originals the Desert Boat Bee Wax 26106562 (7B)Solovair NPS Shoes Made in England 5 Eye Black/White American Brogue S052-L5812 , Man/Woman Mens Clarks Casual Shoes 'Cotrell Style' High-quality The highest quality material Recommended today , Nautical leather Suede Red Blue Brown Beige Size 39 40 41 42 43 44 45 46 , Dr Martens 5 Hole 8053 Black Nappa 11849001 Original Doc , Dr Martens 3-HOLE 1461 Valdemar Cherry Red 15098600 Original Classic Doc , Men boots leather model EDWARD Aus 1.5 to 12 , UMBRO Limited BUMPY Athletic Sneaker Shoes White Sz 220-280mm Pre-OrderShoes Igi&Co Man 67232 00 Sneakers Sport Casual Suede Comfort Made in Italy Dark , The Classic Clarks Originals The Desert Boat Brown Tumb 26104990 (7A)Shoes Igi&Co man 56780 00 Classic slip on Made in Italy Suede Blue , DC SHOES WALLON S NAVY KHAKI SHOES NEW SS 2016 39 SKATE , NEW MORENA GABBRIELLI FA-B2588 Men's Derby Shoe Navy , AUTHENTIC JIMMY CHOO MENS TASSELED SUEDE DRIVING SHOES BROWN GRADE NS USED -HPDC SHOES EVAN SMITH HI ZERO BLACK BLACK WHITE SS 2018 SKATE SHOES 42 NEW
    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4 - blurrypron.com>Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4 - blurrypron.com
    Adidas Superstar Painted 2016 Shoes Studded ORIGINAL 100% ITALIE 2018 B , Billionaire Couture Men's Blue Suede Loafers Shoes with Dragon Logo Embroidery , LADIES SHOES/FOOTWEAR - Cabello sandal 718 tan , NEW FRENCH CONNECTION WOMENS ADELINE STRIPE CANVAS ESPADRILLES , New Clarks IDELLA CATE Suede Women Shoes Sz 8.5 , Missoni Womens Black Ballet Flats Size 8 (423049)Klogs Footwear Women's Imperial Leather Clog Spring Love Patent 6 M (C) , Womens SoftWalk Black Leather Slip On Career Low Heel Comfort Shoes 10 N NarrowClubwear Womens Tassels Pointy Toes High Stilettos Heels Suede Pumps Zip ShoesVictorian Trading Co Judith Pointy Toe Oxford School Marm Shoes SZ 8 , Cole Haan Women's Larue Grand Pump 85MM - Choose SZ/ColorTORY BURCH HEELS. BLACK SUEDE GOLD TRIMMED LOGO 8.5 $328 retail , OLUKAI LEOA WOMEN'S LEATHER STRAPPY OPEN TOE SANDALS W/ STRAP 11 W , Men Outdoor Hiking Trail Trainers Sneakers Sports Military Casual Shoes Sz Sbox1Puma x Shantell Martin Suede - Black - Mens , Sanuk Pick Pocket Sidewalk Surfer - Charcoal - NewSkechers Status-Versen Shoes Beige Men 65550-BGEAir Jordan XV1.5 Basketball Shoes 375387-161 White/Red/Black Sz 13 , Vintage NUNN BUSH USA 1970'S Leather Bicycle Toe Ankle Dress Boots Men's 12 D , MENS SPERRY TOP SIDER TAN LANYARD 2 EYED BOAT SHOES 0777924 SIZE 10.5 Med i385 , ALEXANDER McQUEEN Monk Strap Ankle Boots, Black 42 US 9 $1,080 MSRP , Mens Leather Slip Ons Rivet Spike Loafers Round Toe Slingbacks Clubwear Shoes sz , Vibram Men's CVT-Hemp Sneaker, Black, 42 EU/9.0-9.5 M US D EU/9.0-9.5 USWomens Skechers Flex Appeal 3.0 Slate Pink Performance Trainers Shu SizeWomen’s New Balance 574 ROSE GOLD Black Dark Grey 9.5 Run Casual Shoes WL574PMR , AIR JORDAN 5 RETRO LOW White Metallic Silver Nike V 1 3 4 6 11 12 Supreme 2006 9 , Womens Fur trim Over The Knee Winter Snow Boots Buckle Strap Warm Shoes casualLAMO LEATHER AUSTRALIAN SHEEPSKIN BOOT BOOTS - Women's 7 (Black) $125 , New Womens fashion Ankle Block Heels Warm fur pointed Party Chunky Heels BootBrand New Steve Madden Women's Porshia Cognac Lea Ankle Boots Sz 10 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4 - 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.

    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4 - 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
    Le Suede 17183 Coq Sportif Eclat Suede casual 1320976 mens blue running retro casual sneakers shoes 79fe3e4
    Casual Shoes
    >
    ;