"I don't think the S&P ever goes down by 10 percent or more unless people really get afraid of an earnings recession," he said Friday on CNBC's "Fast Money." "So I think you have to think about what could introduce volatility into the earnings estimates. That's the issue."
While big-cap names are often looked at as the safety trade, Parker sees opportunity in small-cap stocks.
"I'm getting pretty interested in small caps, to be honest with you. They've sold off a lot," said Parker. "But I think about small caps this way: They're going to grow a lot faster in our base case, they have more ability to expand their margins from here, they're more nascent then the M&A cycle, and you don't really want to get too negative if M&A starts picking up."
—By CNBC's Leanne Miller