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This will send S&P up 20%: Morgan Stanley’s Parker

Adam Parker is bullish on stocks, predicting that the S&P 500 will finish the year at the cute-sounding level 2,014. But on Tuesday's episode of "Futures Now," Morgan Stanley's chief U.S. equity strategist said that it could get much better than that.

"I think the upside could be 20 percent from here, if we do get people more optimistic that growth's going to improve," Parker said.

In fact, though his 2014 2,014 target is one of Wall Street's most bullish, he finds it to be rather tame.

"That's only 7 percent upside, and we don't have a lot of multiple expansion in there," Parker said. "To me, it's a function of two things. One, the Fed's going to be more accommodative—we know that. And two, the earnings growth and the economy in the U.S. are going to improve. So that combination should be pretty good for equities. I don't think 7 percent from here to the end of the year is really heroic."

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However, if investors do become more excited about future growth that should be expected to expand multiples, driving stock prices far higher.

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The strategist adds only one caveat.

"You always sounds dumber when you're bullish," Parker granted.

—By CNBC's Alex Rosenberg.

Watch "Futures Now" Tuesdays and Thursdays at 1 p.m. ET exclusively on FuturesNow.CNBC.com!

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