A decline in the S&P 500 at the start of the week could be part of a larger trend, Morgan Stanley Chief U.S. Equity Strategist Adam Parker said Monday on CNBC.
"We have frameworks for earnings and frameworks for a multiple that you should pay for earnings, and that's how you get the market level," he said. "I think the market is ahead of the fundamentals, but when I talk to investors I think they're not really worried about tail risk right now. They're worried about upside risk."
On "Fast Money," he said that the market could continue to climb as long as earnings "don't disappoint."
Parker added that he wasn't calling for a pullback in the short-term, but by year-end he had a target of 1,434 in the S&P 500 and earnings of $99.
"Our framework says the market's ahead of itself because usually when you have very low earnings growth and very extreme interest rates, it's not good for markets," he said.
Parker said a correction could appear in the next six to 12 months.
In the very near-term, he added, "it's too tough to call."
Trader disclosure: On Feb. 11, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long HD; Josh Brown is long XLF; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long HD; Stephanie Link is long ADT; Simon Baker is funds long AAPL; Simon Baker is funds long XLY; Simon Baker is funds long GOOG; Simon Baker is funds long XLB; Simon Baker is funds long QCOM ; Simon Baker is funds long DIS; Simon Baker is funds long QQQ; Simon Baker is funds long UTX; Simon Baker is funds long JNJ; Simon Baker is funds long WFC;
For Adam Parker
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