Fund flows are sending encouraging short-term signals, says TrimTabs CEO David Santschi, though the quarterly volume of corporate buybacks, highly correlated with the S&P 500, has dropped to the lowest level in eight years.
Joel Tillinghast, who specializes in small-cap stocks, said his job as portfolio manager has also become tougher because of the changing nature of the U.S. economy.
It increasingly appears that the stocks investors are buying when the market dips in general are the stocks that have generally been going up, not the ones headed down.