Valuations have gotten so expensive in the U.S. stock market that Deutsche Private Wealth Management has become "cautious," its chief investment strategist Larry Adam told CNBC on Monday.
Those valuations have been driven by the optimism about what President Donald Trump and congressional Republicans can deliver on tax reform, deregulation and infrastructure spending.
However, events like Monday's hearing on alleged Russian election interference are an example of what can put those promises on hold, Adam said in an interview with "Closing Bell."
"That's really starting to create a logjam down in Washington, which may prevent Washington from really focusing on the more substantive policy issues like tax reform and infrastructure going forward," he said. "If that doesn't happen, that will actually disappoint the market."