Economy

What’s worrying Morgan Stanley investors: Adam Parker

Expect Fed to remain accomodative: Strategist
VIDEO1:3801:38
Expect Fed to remain accomodative: Strategist

Investors aren't worried too much about whether analysts have to revise their 2014 forecasts because of a rocky past few weeks, Morgan Stanley's chief equity strategist told CNBC on Monday.

More so, they're anxious about whether the U.S. economic recovery could come to a screeching halt, said Morgan Stanley's Adam Parker.

"What they're more worried about is could there be a recession?" Parker said on "Squawk on the Street." "Could the earnings collapse?"

(Read more: Investors running from stocks like it's 2011 again)

Parker's comments come after two months straight of weaker-than-expected U.S. employment reports and a volatile few weeks in global financial markets, precipitated by fears over emerging economies and the U.S. Federal Reserve's plans to scale down its economic stimulus program.

Still, Parker said his base-case forecast projects 6 percent earnings growth in the this year, or about 11 percent higher than current levels.

"I'm worried about everything," Parker said. "That's my job. But to me, the highest priority of fear—No 1.— the U.S. economy. Because once you start tapering, if you get a soft patch in the U.S. economy, it's hard to look you in the eye and say, 'Yeah, lower growth. Lower liquidity. That's still fine.' "

Parker added that earnings trajectories seem acceptable for the time being, saying "I don't really think it's panic time to be honest with you." He went on to say that he expected the Fed to remain accommodative for a long time.

He said that if new Fed Chair Janet Yellen can keep the front end of the Treasury bond yield curve from moving, that would give a "nice runway for equities."

(Read more: US economy is 'fundamentally sound': JPM's Kasman)

"I don't see how the inflation data or the jobs data are anywhere close for them to move the front end," Parker said.

After the U.S. economy, Parker said he's worried about the Chinese banking system and economic growth there, rather than the concerns over emerging market currencies that have caused stock market selloffs around the globe.

"Some of the other issues that can cause day-to-day volatility, like Turkey or Argentina, I'm less worried about," Parker said.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."