The Stock Market Is Calm. You're Warned

Bloomberg Businessweek reports:

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.