The Dow, S&P 500 and Nasdaq have clawed back most of their losses for 2016, with the S&P only off 2.5 percent year-to-date. Stocks fell to a two-year low on February 11 and all three indexes were in correction territory.
Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management, tells CNBC's "Power Lunch" on Tuesday he doesn't expect double-digit returns despite this rally.
"As the market rights itself and is closing in on flat return for the year, the upside from here is much more tempered," Slimmon said.
He believes investors have to look outside the U.S. for better returns.
"Emerging markets could post better returns than the S&P 500 this year. They will outperform the U.S. market," Slimmon said.
He likes Southeast Asia, Taiwan and Korea.