Peter Boockvar: Three threats to the market rally

Since the start of 2013, bullish investors have been generally happy. The S&P 500 is up over 18% and the year is only half over.

Still, the market awaits the Federal Reserve Bank's next move. The Fed's program of buying $85 billion in bonds every month brought interest rates to their lowest levels in a few generations. Lower interest rates make borrowing costs cheaper but they also encourage investors to put money in stocks to get a better return.

However, with the potential of the Fed tapering its bond-buying, the market is now contemplating a world without the Fed keeping bond prices up. Lower bond prices mean higher interest rates.

Meanwhile, it's reporting season on Wall Street. For companies in the S&P 500, their top lines– revenues – are surprising analysts on the upside half of the time this quarter.

On the bottom line, though, earnings have generally been better than expected. About 70% of companies in the index that have reported so far are showing profits higher than Wall Street expected. Higher profits are coming in thanks to management squeezing more out of their companies than from growing their sales.

So, as earnings continue to come in and Fed policy remains an issue, what may bring the market's rally to a screeching halt?

Peter Boockvar, Chief Market Analyst at The Lindsey Group and CNBC Contributor, gives the three biggest risks to the rally to Talking Numbers.

To hear Boockvar's analysis and what he says are the biggest threats to the market, watch the video above.

Follow us on Twitter: @CNBCNumbers
Like us on Facebook: