Russ Koesterich, head of asset allocation for BlackRock's Global Allocation Fund, told CNBC's "Halftime Report" that this is an environment of fragile growth and low volatility despite significant risk, especially considering China, U.S. and European politics.
The CBOE Volatility Index hit a low of 13.04 on Friday, its lowest level since April 20 when it traded as low as 12.50.
"You've got valuations that are stretched by most historical measures. You've got volatility well below the historical average. While the economic data has been better, we're still stuck in an environment in which sluggish growth is not giving much of a tailwind to earnings," Koesterich said.
"So in that environment, do I think the market is going to rip? Maybe, but I doubt it's going to be in the U.S., particularly if we see the dollar continue to move higher," he said.