President Donald Trump's promises of tax reform have helped push the market higher, but one well-known strategist told CNBC on Wednesday investors may need to temper their expectations.
"We have to curb our enthusiasm about tax reform of any variety coming in the first half of the year," said Liz Ann Sonders, chief investment strategist at Charles Schwab.
Last week, Trump said he would announce his "phenomenal" tax plan in the coming weeks. On Wednesday, he said work on the plan was going "really well" but gave no details except to say it would simplify the tax code.
While Sonders believes investors' eagerness overall should be muted in the near-term, she thinks the implications for earnings are potentially significant.
That's because the consensus is that earnings will be up about 12 percent for 2017, and that doesn't factor in any fiscal stimulus, she told "Closing Bell."
Add in tax cuts and that could mean another 7 percent to 15 percent earnings growth, Sonders noted.