The stock market run-up will end this year as the Federal Reserve tapers its asset purchases, HSBC predicts.

"Global equities initially shrugged off the start of Fed tapering," Garry Evans, global head of equity strategy at HSBC, wrote in a report, according to CNBC.

"But, as the Fed continues to cut asset purchases this year and markets start to anticipate the first rate rise in 2015, we think this will present a headwind for equities, particularly in the U.S."

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HSBC is predicting the S&P 500 will increase 4 percent to 1,900 this year, and it downgraded its view of U.S. stocks from neutral and underweight.

"With earnings key, we favor countries and sectors with the greatest potential for upside surprises," Evans stated, according to CNBC. "So we cut the U.S. to underweight because earnings are near record highs, valuations look stretched relative to the rest of the world and the Fed is moving towards ending monetary easing more quickly than other developed-market central banks."

Although he doesn't expect earnings to drop, he does anticipate corporate earnings growth will slow. Earnings of European corporate earnings, on the other hand, will recover.

While the Fed is already winding down its quantitative easing stimulus, the European Central Bank has room for more monetary easing, as the region faces disinflation pressures, Evans explained.

"Whilst the policy environment remains attractive in absolute terms, the direction of change is negative relative to other regions."

U.S. stocks have a price-earnings ratio of 20. That's a 20 percent premium over stocks worldwide, according to HSBC.

"Our analysis shows that markets tend to underperform in the short term when valuations reach such an extreme," Evans stated, according to CNBC.

Most other experts agree that the rapid rise of stocks will slow in 2014. The consensus forecast of 30 strategists and money managers surveyed by CNNMoney calls for the S&P 500 to finish 2014 at 1,960, a 6 percent increase, substantially down from last year's 30 percent rise. Year-end predictions for the index range from 2,100 to 1,800.

A year ago, the experts surveyed predicted stocks would increase 5 percent in 2013, while the most bullish expert said the index would rise 27 percent.

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