Wells Capital’s Jim Paulsen says he thinks the market might climb some more, but then come back down amid headwinds that include high valuations and interest rate increases.

Paulsen tells CNBC that he thinks the US economy will continue to improve, and he also thinks Europe will fare better than many expect. That, he says, will force the Federal Reserve’s hand on interest rates before year-end. Paulsen also says one of the defining characteristics of this bull market has been a perpetual “wall of worry” being in place. “That’s sort of absent this year,” he says. He thinks that we’ll have more of an inflationary feel in the second half of 2015, with wages rising, and that will force the Fed to raise rates. With things finally getting better on Main Street, Paulsen says he wouldn’t be surprised to see Wall Street struggle a bit as expectations get too high.