Why? A lot has changed in the last decade, causing several old signals to lose their predictive power. Economic growth has slowed, while fiscal and monetary policy have lost their potency.

In the current environment, when investors flock to safe assets, it no longer appears to be an indicator of "economic and general stock market weakness," Paulsen argues. Instead, it has morphed into another "contrarian indicator" of investor sentiment.

First « 1 2 » Next