NEW YORK, Nov 13 (Reuters) - Hedge fund manager Nelson

Peltz, who backed president-elect Donald Trump this year, said

the election-fueled stock market rally cannot continue

uninterrupted.

"Trees don't grow to the sky. Definitely not uninterrupted,"

Peltz said at the CNBC Delivering Alpha conference when asked

whether stocks can continue to zoom higher in the wake of Donald

Trump's election. "There will be something that will upset it,"

Peltz said.

Stock prices for financial companies have climbed in the

last week on hopes for looser regulation and Wall Street

celebrated gains from the so-called Trump trade. But some

analysts worry Trump's policies may also be inflationary,

keeping interest rates high for longer.

Peltz, who runs Trian Fund Management and said in 2021 that he

was sorry he voted for Trump, left no doubt that he had reversed

course. He even took credit for connecting Trump with Tesla

chief Elon Musk, the world's richest person, whose

financial aid helped secure Trump's victory.

"I was a matchmaker," Peltz said, recalling that he paved

the way when Musk was visiting the Peltz home for a weekend and

Peltz invited Trump to join them for breakfast in 2023.

"I don't know that Donald would have had this sweeping

victory without Elon's help," Peltz said. Musk's PAC spent an

estimated $200 million to help elect Trump.

Now Trump is rewarding Musk, and former presidential

candidate Vivek Ramaswamy, for their support with a mandate to

co-lead the newly created Department of Government Efficiency

that will aim to make cuts and changes in the government.

"If Donald gives him the opportunity, he will cut costs,"

Peltz said, adding that cost cuts are necessary.

Peltz also said Trump's threats of tariffs on goods from

the European Union, which could weigh on industries ranging from

automobiles to fashion, is a negotiating tactic. "The threat of

tariffs will bring these guys in line," he said, adding it is

Trump's style to "come to the table with a hammer and see what

happens."