Here’s why investors shouldn't be too bullish just yet

U.S. equities are still trading on the “expensive side” that continues to warrant caution, says Matt Maley. He’s the Chief Market Strategist at Miller Tabak.

Maley’s remarks on CNBC’s ‘Worldwide Exchange’

Many expect the U.S. central bank to turn less aggressive in the coming months, creating room for the S&P 500 index to rally from here. But Maley warns the reason why Fed might choose to be less hawkish, in itself, is bearish for the market.

The Federal Reserve, however, has already confirmed it will continue to raise rates until inflation has been tamed.

Maley expects earnings estimates to come down

The Miller Tabak expert is convinced the market has not priced in the double whammy of rising rates and shrinking balance sheet. This morning on CNBC’s “Worldwide Exchange”, he said:

Maley reiterated that we’re in a supply-driven inflation right now. It wasn’t good for the stocks in 1970, and it likely won’t be this time as well, he concluded.