Category Archives: Warning Signs

The Stock Market Is Calm. You’re Warned

“Stocks haven’t risen this much with such narrow price swings since 1971. This puts equities at risk for short-term losses” – Bloomberg BusinessWeek

I have been thinking about this for at least a week now. Great to find a good article that talks about the topic that might not be in many peoples heads. Markets go up, markets go down… thats how they work. ┬áIf they are just going one way… I would RUN for the hills and duck for cover… because something will happen.

Read the full BusinessWeek article here.

If you’ve been checking your portfolio regularly, you may have noticed something peculiar: Week after week, the market has been moving up without major setbacks. The Standard & Poor’s 500-stock index soared 30 percent from July 2 to Feb. 15, falling 1 percent or more on only 13 occasions during that time. Based on one measure of volatility, stocks haven’t risen this much amid price swings this narrow since 1971.

Don’t get complacent. While many investors expect the rally to continue, analysts say the calm can’t last and may be a sign of a coming pullback. “It is unusual to have such a slow grind higher,” says Walter Todd, who helps manage about $900 million at Greenwood Capital Associates in Greenwood, S.C.

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