The stock market may be hitting new highs, but it is still undervalued, investment expert Paul Dietrich told CNBC on Tuesday.
Equities have moved higher since President Donald Trump's victory, and on Tuesday they once again closed at record levels.
Dietrich told "Closing Bell" that independent economic analysts believe if Trump's policies of tax reform, regulatory reform and infrastructure spending go through, the economy can grow by 3.5 percent.
"If you lower corporate taxes from 35 percent to 15 or 20 percent, that goes to the bottom line. Those are earnings and then we know the stock market responds well to economic stimulus," the CEO and chief investment officer at Fairfax Global Markets said. "This market is going to look undervalued when we look back."
On Tuesday, investment legend Jack Bogle told "Squawk on the Street" he wasn't feeling "super confident" about the rally since he sees a struggle to reach the White House's goal of 3 percent to 3.5 percent economic growth.
Goldman Sachs also isn't buying into the optimism, telling clients this week that investors have grown too confident that tax cuts and other initiatives from Trump's administration will have a major impact on business.
"Financial market reconciliation lies ahead," said David Kostin, Goldman's chief U.S. equity strategist. "We are approaching the point of maximum optimism and the S&P 500 will give back recent gains as investors embrace the reality that tax reform is likely to provide a smaller, later tail wind to corporate earnings than originally expected."
Michael Yoshikami, founder and CEO of Destination Wealth Management, agrees the market is ahead of itself.
"Tax reform is going to be a little sloppier than people hope and it's going to impact growth," he said in an interview with "Closing Bell."
That said, it will likely get a bit more ahead of itself since the bears are starting to give up, he added.
"People are just chasing to get into the markets because they think they are going higher," Yoshikami said.
He would focus on names that are out of favor or have some investment controversy and would not chase names based solely on what's happening with tax reform.
— CNBC's Jeff Cox and Elizabeth Gurdus contributed to this report.