Is Goldilocks Getting Wrinkles?

A market expert told CNBC that the Goldilocks economic scenario is getting a little long in the tooth and is especially concerned with the financial sector, which may show cracks in the façade this week.

"The stock market is overvalued," said Richard Suttmeier, chief market strategist at "I'm viewing this as another opportunity for investors to lighten up on positions."

Suttmeier said he was particularly worried about the financial sector. "Sure, some of the financial stocks are rallying, but that's because they're coming off pretty much near 52-week lows," he said.

But Charles Lieberman, chief investment officer at Advisors Capital Management, said the market has a lot further to go.

"I think those sectors are actually very interesting to buy because they are at lows," said Lieberman. "They haven't participated in the rally."

Lieberman highlighted the current economic environment of moderate growth, low interest rates and "just so much liquidity you have to use all of the fingers of your hand to count up the deals."

'The conditions are really idyllic for a market advance," Lieberman said.

But Suttmeier said this "Goldilocks" economic outlook was no longer relevant.

"I think Goldilocks is getting wrinkles," he said. "It's an old scenario, now we're in a situation where we're seeing inflation above the Fed's target range, and we're seeing that the distress in the banking system."

Suttmeier predicted that warnings signs are likely to appear this week when more than 60 community and regional banks are set to report.

"They're going to tell us that they're having an increase in 90-day loans and noncurrent loans and that is going to be a problem," he said.