There will be a few challenging years ahead for the U.S. stock market, one investment expert told CNBC on Friday.
While the three major indexes have been hitting fresh highs since President-elect Donald Trump's victory in November, Russell Investments chief investment officer Jeff Hussey is predicting the S&P 500 will end 2017 at 2,100, about 8 percent lower than its current level.
One reason is the market's steep valuation, including high price-to-earnings ratios, he said in an interview with CNBC's "Power Lunch."
Plus, profit margins are very high and they tend to revert, Hussey added.
"We think that those will be impacted both by wage growth that we're seeing and by interest rates rising," he said. "A lot of financial engineering has led to high earnings per share because people bought back their shares with debt issuance."