The market has been running on "two sources of rocket fuel" and one of those sources may soon stop the rally in its tracks, expert Michael Jones told CNBC on Friday.
While earnings have been "very sustainable" and look good going into the second quarter, the issue is with President Donald Trump's promises of tax cuts and infrastructure spending, the chief investment officer for RiverFront Investment Group said in an interview with "Closing Bell."
"That's where I think the market may be set up for a little bit of disappointment, having to wait a little longer for the goodies to come out of Washington. And that's why I think we could see a pullback in the next few weeks," Jones predicted.
Trump has promised to slash corporate tax rates from 35 percent to somewhere between 15 and 20 percent, as well as cut the individual taxes. He has also pledged to spend $1 trillion on infrastructure investment. Last week, the president said he would unveil his tax plan in the next several weeks.
The S&P 500 is up about 10 percent since the election.
Christian Magoon, CEO of Amplify ETFs, also thinks the market could be setting itself up for disappointment in the coming weeks.
"The animal spirits are certainly bullish. They are resilient. But the contrarian in me makes me wonder a little bit if it's overdone, if 'make America great again' has maybe had — I don't want to say a bubble effect — but maybe too much of a push on valuations here in the short term," he told "Closing Bell."
David Kelly, chief global strategist at JPMorgan Funds, thinks there will be some type of corporate tax cut this year, but he's also "getting a little nervous about the height of the market."
The market is currently running about 14 percent above the 25-year average on forward price-earnings ratios, he noted. And if the U.S. corporate tax were "eliminated," it would push up earnings about 14 percent, Kelly said.
"People need to get realistic about what they're going to make in U.S. stocks over the next few years," he told "Closing Bell."
Because of those valuations, Mark Eibel is looking outside the United States for value. He said earnings are up double digits in Europe, which also has cheaper stock valuations and zero interest rates.
"When you add valuation, cycle, sentiment into the marketplace, there's just better opportunities across the board outside than inside the U.S.," the chief investment strategies director for Russell Investments said in an interview with "Closing Bell."
Jones also sees opportunity outside the U.S., noting that he thinks Japan looks "extremely attractive" because it has a turnaround in earnings and stimulus that has already been implemented.