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‘We Dream 2nd Half Is Better’: Pro

The stock market continues to rise because of optimism for the second half of 2013, Morgan Stanley Chief U.S. Strategist Adam Parker said Thursday.

"The reason we're going up is because we can dream," he said. "We dream the second half is better, and we're dreaming liquidity's still going to be there."

On CNBC's "Fast Money," Parker said that the negative-to-positive guidance ratio is 4½ to 1.

"It's one of the highest negative-to-positive guidance in a few years," he added.

Parker also noted that "the kind of the stocks that are working" – in health care, consumer staples and utilities – aren't consistent with that.

Top sectors included industrials, health care and technology, he said, with a focus on dividends and dividend growth, quality names and wariness of exposure to China.

Parker added that the market was likely to see gains.

"What could cause a big market correction? It's either earnings collapsing, which I don't really see happening. They're not great, but they're not going to collapse," he said. "Or something about QE.

"And so, what are you going to learn in the next couple of months that's going to change your mind the second half is better? It might not be, but you're not going to learn anything anytime soon."


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