The Trump rally is on its last legs, and according to one strategist, that means stocks could see a huge drop in the coming months.
Since the election, the S&P 500 Index has rallied more than 6 percent while the Nasdaq hit another record intraday high on Friday. Meanwhile, the Dow Jones Industrial Average continues to hover just under the 20,000 level, underscoring what some analysts believe is a market that's starting to look too frothy.
"The U.S. market, we feel, was already overvalued going into the election," Mark Eibel, director of client investment strategies at Russell Investments told CNBC's "Futures Now"last week.
"It got even more extended, and I think you're seeing this year almost a re-balancing into some of those other areas, whether it's bonds, whether it's emerging markets."
Emerging markets initially under-performed the S&P 500 following the election, but has rallied 5 percent to start the year versus under 2 percent for the U.S. index.
"A multi-asset platform, we think, really plays well in 2017, and that's what we've seen so far," added Eibel.
He did stress that it doesn't mean another run up in stocks is impossible, but with U.S. equities trading at a premium, gains will be more difficult when compared to other parts of the world. This is especially true, given that Eibel believes stocks are in "wait and see" mode ahead of Trump's inauguration.
While the strategist points out that generally, stocks do rally between every election and inauguration regardless of who wins, he does think that much needs to be seen from what Trump will do once he officially enters the White House.
This week, the president-elect sent biotech stocks tumbling on Wednesday following a press conference where he commented on drug pricing. His tweets on certain autos and defense stocks have also sent ripples across the markets.