U.S. stocks opened sharply lower Monday following a selloff in Asia, but domestic equities aren't out for the count in 2015, experts told CNBC.
Investors are worried the United States is the last man standing and ready for a tumble in the face of weakness in China and a downturn in commodities, Fundstrat Global Advisors' Tom Lee said Monday.
However, the consummate bull said U.S. stocks have room to run. That's because price-to-earnings ratios have contracted as corporate earnings have grown against the backdrop of a flat stock market, making U.S. equities look less expensive.
"At this moment a lot of our clients have raised a lot of cash, so I think that they're very cautiously positioned," Lee told CNBC's "Squawk Box." "In the beginning of the year, they had their chips on Europe and in China. I think as they think about where they're going to put it, where they're going to invest in the second half, I think the U.S. has some visibility."
The U.S. market only looks expensive when one factors in energy, he said. While the fall in crude prices initially hurt stocks due to its impact on industrial production, consumers and companies should reap a dividend from lower energy costs.
Lee noted that in 1904, the last time the U.S. market produced zero percent gains in the first and second quarters, stocks rallied 42 percent in the following six months.