Investors see higher interest rates and inflation, lower gains for stocks

The results of the latest CNBC Fed Survey has been released.

The survey results showed that there is an 86 percent chance that the Fed will hike interest rates in June as respondents raised their inflation forecast for this year to 2.45 percent.

Also, respondents see the S&P 500 rising to 2,787 by the end of this year and to 2,879 by the end of 2019. This, though, was the second survey in a row that respondents lowered their outlook for stocks for both this year and next.

Indeed, Mark Mobius, founding partner at Mobius Capital Partners, thinks there could be "a substantial correction in the markets".

A 30 to 40 percent adjustment is "not unreasonable," Mobius told CNBC, although he added that that was not a prediction, only that "we've got to be ready for that".

"The catalyst I believe will come from continuing increases in interest rates," he said.