High-Volume Stocks Outperform in Volatile Markets as Marsh Slides to 214th in Liquidity Ranking

Marsh (MMC) saw its trading volume drop 26.57% to $450 million on August 8, 2025, ranking 214th in market liquidity. The insurer’s modest 0.18% gain contrasted with broader volatility, as liquidity concentration effects gained renewed focus in market strategies.

Recent backtesting revealed that a strategy buying the top 500 most actively traded stocks and holding for one day generated a 166.71% cumulative return since 2022. This outperformed benchmark indices by 137.53%, underscoring how liquidity-driven momentum amplifies short-term performance. High-volume assets tend to react more acutely to macroeconomic shifts and investor sentiment, creating compounding opportunities in turbulent markets.

The results highlight the strategic advantage of liquidity concentration during periods of heightened volatility. Stocks with robust trading activity often exhibit stronger price resilience and faster trend amplification, making them attractive for short-horizon strategies. Marsh’s current liquidity profile, while down sharply, remains within a broader context where volume dynamics increasingly dictate market participation patterns.

The backtest period (2022-present) produced a 166.71% return for the volume-screened strategy, exceeding the benchmark’s 29.18% by 137.53 percentage points. This emphasizes liquidity concentration’s role in generating excess returns during market turbulence.