While some prominent investors are cautious on the market right now, Morgan Stanley's chief U.S. equity strategist Adam Parker told CNBC he thinks U.S. stocks are "pretty attractive."
He's expecting returns in the mid-single digits 12 months out.
"If you compare that to what you can get in other equity regions in the world, what you're getting in government bonds, what you're getting in corporate bonds, I think U.S. equities look like pretty good risk reward," he said in an interview with "Power Lunch" on Monday.
In fact, a couple of months ago Morgan Stanley raised its target on the to 2,300.
Parker noted that investors also get a little more than a 2 percent dividend yield, as well as a 2.3 percent net buyback, in the stock market.
Parker's comments followed hedge fund billionaire David Tepper's remarks to Scott Wapner on CNBC's "Fast Money Halftime Report" on Monday that he's "pretty cautious" on the market right now and has a lot of money in cash.
Billionaire investor Carl Icahn also told "Halftime Report" on Monday that he's more and more concerned about the stock market, noting that many companies in the S&P 500 are "way overvalued."
And while the uncertainty surrounding the election has some concerned, Parker said his view is medium- to long term.
He also believes economic cycles can move a bit independently from who is in office.
"It's really hard to measure what the political influence is on the stock market. It can really vary," he said. "So my sense is interest rate cycles and economic cycles can kind of deviate from which party is in control, and you can show that over time."
Parker believes there are areas in the market that are mispriced and are set to outperform over the next several months, beyond the election.
One of those is biotech, despite the recent rhetoric surrounding drug pricing.
"Biotech trades at the same multiples on cash flow and earnings as say, pharma, despite superior growth rate, more onerous assumptions about the pipeline, and most people don't realize … a lot of the pharma companies have taken more aggressive pricing on their products than biotech," he said.
— CNBC's Christine Wang and Berkeley Lovelace Jr. contributed to this report.