David Blitzer, managing director at S&P Dow Jones Indices, said despite the stock market seemingly setting new record highs on a daily basis, savvy investors shouldn’t be fooled.

“I think the market overall quickly has periods, it's running on hope right now,” he told CNBC. “The economy is good. That's definitely a plus. It was set up to take off in November when the election came,” he said.

The U.S. stock market has been on a roll since the election of Donald Trump as president as investors bet on his plans to reform the tax code and cut regulation. The S&P 500 has risen about 11 percent since early November.

“The economy was better then than anybody knew. Probably better now than most people realize. I would agree the risk in the next few years is not deflation in any way, probably inflation. I think for sure it's going up over 2% by the end of this year,” he said.

“I think inflation is going to go higher over the next year and so on. But I think for the market, we got all pumped up on hope, euphoria, excitement about the election, excitement about the idea that we're going to have big tax cuts and so on,” he said.

“At some point we've got to deliver. I don't think anybody can tell you the date by which we've got to deliver," he said.

"But if we're sitting here next year and it hasn't been delivered at this time, believe me, it's going to look a whole lot different and we're not going to see very many smiles in that kind of thing. You can't go for hope forever. Have you to have real hope at some point,” he said.

Others agree that the Trump administration will eventually have to make solid advances for any sustained market rally to continue.

"Given the slow progress in implementing tax cuts and infrastructure spending plans, markets will soon realize that they are ahead of themselves," Hussein Sayed, chief market strategist at FXTM, told Reuters.

"I'm still quite confident that U.S. protectionist policies will do more harm than good."

(Newsmax wires services contributed to this report).

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