There are risks that inflation could heat up at bit and therefore the risk that the Fed might have to be a bit more vigilant than the market expects is the thing that makes me the most cautious.

I think that fears of inflation are overblown, and that when we consider energy prices have pulled back a bit, there doesn't seem to be a lot of evidence that inflation has propagated in the economy beyond energy.

It is certainly a risk if you have new money in the market now with these kind of price- earnings ratios, ... If you're queasy about drops and ups and downs this might be a time to be a little cautious.

Fed officials' comments point to the risk of faster inflation. We expect three or four more rate hikes this year.

The ECB has signaled that if there was any risk inflation expectations would run away, they would contain them. With this central bank rate-hike cycle, it may lead to a flat yield curve by April.

Sure, earnings will be slower than they were in the fourth quarter, but margins can't expand forever. But on a risk/reward basis, stocks are still attractive.