The “unchallenged” market

CNBC logo

During my recent CNBC “Closing Bell” segment I touched on a topic that has been intriguing me for some time, small caps. Currently, there is no liquidity; they’ve completely dried-up even as prices have dropped, which is a sign of a dysfunctional market. Historically, when prices drop, liquidity goes up, but it hasn’t. I asked CNBC contributor Rick Santelli what he thinks of this abnormal market, particularly in small caps; click the image below to see the entire segment and his response.