Montecito Capital Management

Over the past two years, investor exuberance has poured over $150 billion into equity funds. The perception of market risk has been sharply lowered over the past years by the central banks supportive activities in the capital markets and the high octane fuel of near zero interest rates. Meanwhile, Bernankes buyback of treasury and mortgage back securities is at a pace of moving the Feds balance sheet to over $4 trillion.