Broad-Based Index

Finance allah shmoop what is thin market peahen happens when

few stocks are trading on bonds to actually thin is

illiquid thin is when there just aren't a lot of

buyers at the given price levels Thin is when trading

volumes are described by the kindly wise cnbc commentators as

being anemic Thin is when the headlines ask where have

all the stock buyers gone Long time passing bob dylan

i'll go ask your parents finn is it Well not

this guy Fat is high volumes lots of cash being

put to work Buying securities fat is big demand to

buy a big supply of supply Fat or liquid markets

are generally driven by cash being put to work which

either came from investors who simply saved their pennies to

then deploy them in the market's taking on more risk

by being exposed to more volatility and generally speaking hi

liquidity even in a world where the stock market is

flat is generally perceived as bullish or positive voting in

the future of stock market values Yeah so what does

all that mean Money being put to work is good

It adds liquidity It means people are hopeful optimistic lots

Of opinions Then goto work assessing the upside and downside

of the market such that the gumball estimate effect is

in place And if you didn't go to third grade

in the last decade the gumball estimate game revolves around

the idea that if many opinions estimate the number of

gumballs in this big fish tank those numbers get averaged

and way more often than not The average guesses in

fact very close to the actual number of gumballs crushing

down on the innocent guppies and other goldfish below The

same holds true in the stock market where the aggregation

of many opinions usually makes for better decisions or at

least more accurate estimates And in the case where a

market suddenly grows thin it means that a lot of

educated well heeled invest astors have been spooked by the

notion of taking on risk in their portfolios by taking

their safe cash and risking it in the market So

they d risk or simply then keep cash in their

wallets Not wanting to put it to work until better 00:02:15.065 --> [endTime] signs come from you know on high