NEW YORK (Fabian Capital Management ) — The risk of complacency is one that you can never really quantify. Often doing nothing is the hardest thing to do, but can be the most fruitful if you investing in a profitable trend or looking for a particular setup to give you an edge.

Other times, complacency is like a drug that lulls you to sleep only to wake up and find out that the reality you had become accustomed to is no longer at hand.

Despite the best efforts of top calling experts, the market has continued to grind slowly higher over the last several months. Some believe that we are entering dangerous bubble territory that is going to culminate in a blow up of epic proportions. Others think that we could easily see the Dow Jones Industrial Average top 20,000 before the next corrective phase takes hold. Ultimately, those differing opinions are what make a market and provide both sides with strong motivation to position themselves for the best possible outcome.

With the summer doldrums firmly in place, I have found myself pondering what the next big move in the market is going to be. Both stocks and bonds have come a long way since this time last year and we are now in a much different dynamic than the panic-induced taper tantrum that was overcome in 2013.

The fact that we have gone nearly two years with the SPDR S&P 500 ETF (SPY ) trading above its 200-day moving average is only adding to the sense of calm that the markets have instilled.

The following list details many of the top risks associated with today’s complacent markets:

1. Junk bonds have reached extreme levels with risk taking pushing yields to historic lows.
2. Small-cap and retail stocks have underperformed in 2014 and may be a leading indicator of weakness.
3. The Fed is exiting its quantitative easing efforts in the near future and will be looking to hike rates in early 2015.
4. Companies are firmly focused on beating earnings and initiating share buybacks as opposed to creating long-term wage growth or reinvesting in new products.
5. The length of time without a normal 10% correction is continuing to extend every day.
6. The CBOE VIX Volatility Index (VIX.X ) shows an overall lack of fear in the marketplace and sense of complacency.
7. Treasury bonds, utility stocks, and other interest-rate sensitive asset classes have been outperforming. These safety trades continue to show no signs of slowing down.
8. Geopolitical risks in Russia, Ukraine and the Middle East have continued to escalate.
9. Trading volume continues to slowly trend lower and may indicate a lack of institutional conviction.