Pro: The Trump Rally May Have Come To An End

John Rutledge, Safanad's chief investment officer, was a guest on CNBC on Tuesday to explain why the market has reached its peak. He said the fundamentals in the market are pretty good, the economy is doing OK, corporate earnings are likewise pretty good and pricing power is returning.

Politics (Always) At Play

However, he continued that President Donald Trump's proposed tax changes and reforms, which were seen as a catalyst to support stocks appears to not be a top priority for the president's administration. In fact, tax reform has taken a backseat to health care reform and new trade policies but, in reality, bringing in a corporate tax cut, favorable conditions on repatriating foreign cash and introducing lower margin tax rates should have been the top priority from day one.

"The tax bill has been pushed back to late in the year, infrastructure spending is at zero; it's going nowhere — that's a next year issue," he emphasized. "So, the tax bill being in third place is being put in jeopardy."

Also playing a role in the market's peak is interest rates moving higher and all of these factors combined implies the market's current multiple is too high.

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Treasury Secretary Steven Mnuchin On Tax Reform, Stock Market Was The 'Trump Rally' Really Any Different From The Bush Or Clinton Rallies? _________ Image Credit: By Sgt. Alicia Brand - https://www.dvidshub.net/image/3116626/wreath-laying-ceremony-with-president-elect-donald-j-trump, Public Domain, via Wikimedia Commons