The market is undergoing a classic growth scare and people are worried about forward economic expansion, Morgan Stanley's chief U.S. equity strategist said Wednesday.
"I think it's an opportunity," Adam Parker said in an interview with CNBC's "Closing Bell." "I actually think the economy is fine here in the U.S."
Despite being bullish on the economy, Morgan Stanley recently downgraded the tech sector from "market weight" to "underweight." The firm cut its exposure to Apple in half.
The strategist said the growth stocks in the sector have been experiencing decelerating trends and have gotten expensive.
"The value names, yeah they look cheap, but without a catalyst ... it's hard to get very excited, so I think the risk/rewards are skewed to the negative," Parker added.
While the Street may be fearful because of market volatility in China, some investors are willing to buy the dips.
"We are so unsophisticated when we look at China," Fairfax Global Markets CEO Paul Dietrich said Wednesday.
Dietrich contends there is a distinction between the government-owned enterprises that are slowing down and the consumer willing to buy in China.
"We saw from General Motors today that they are projecting bigger car sales next year ... I think you're going to be very, very surprised [with] Apple sales," he said about the way companies are performing in China.
In contrast to Parker, Dietrich considers the tech giant an undervalued large-cap stock.
"It's a stock that has a 9.5 P/E, 46 percent return on equity [and] 40 percent profit margin," he noted. "People are crazy if they are not buying this company."
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