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.
The put-to-call ratio of SPDR Gold Shares, the largest ETF backed by the metal, is the highest in two years.
Inflationary expectations are a weather vane.
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.