Here's why investors are far too optimistic that the Fed is going to cut interest rates soon

• The S&P 500 is too expensive for an economy likely headed for a downturn, said UBS Global Wealth Management. 
• "The latest labor market data looks too hot to justify a further dovish shift in Fed policy." 
• Investors are expecting rate cuts to start as early as July. 

Pricey US stocks suggest investors expect the Federal Reserve to start cutting interest rates soon and steer the world's largest economy away from a damaging downturn — but that view is too optimistic, according to UBS Global Wealth Management.