The market rally currently taking hold is "totally misplaced" and February's looming debt ceiling could bring a very scary surprise, one strategist told CNBC Thursday.
"This [rally] shows just how low we've sunk in investor expectations when the market rallies just on 'muddling through.' I disagree completely with those that argue that most of the uncertainty has been lifted," Nicholas Spiro, managing director at Spiro Sovereign Strategy, told CNBC's "Worldwide Exchange."
Spiro warned that the looming debt ceiling in late February or early March — when the U.S.government will reach its borrowing limit and another deal will be needed to raise the debt ceiling — could bring a "very scary surprise."
"I believe that the Republicans will fall into line at the eleventh hour as they have already caved over a relatively minor piece, but it will be extremely messy and there should be a lot of volatility expected [before then]," he said.