His comments echoed those of Steve Eisman, whose bet against the highly leveraged banking system was chronicled in "The Big Short" book and movie. He told "Fast Money" late Monday he doesn't see any risks of that magnitude to any part of the U.S. economy on the horizon.
"There's no big short in my view. There are sector shorts; there are stock shorts. This is back to a stock-picker's market," Eisman said. "I think there are plenty of shorts in this market. It's just not a systemic problem."
Benjamin Segal, global equity portfolio manager at Neuberger Berman, agrees. However, he thinks overseas markets are more attractive, particularly Europe.
"If you see a continuation of profit-margin squeeze here in the U.S. I think valuations are vulnerable," he told "Power Lunch" on Tuesday.
"If you contrast that to the recapitalized European banking system and an economic recovery there, I think the operating leverage drives earnings growth in markets outside the U.S. and valuations are starting at a lower point."
Levitt also thinks investors will do better in international markets such as Europe and emerging markets.
For those investing in the U.S., "you're likely to do better investing in active strategies in the United States and other weighting methodologies besides market capitalization," he noted.
That's because passive strategies, which are pouring a lot of money into market cap stocks, have done well in benign economic cycles and "that is not always going to be the case," Levitt explained.
—CNBC's Evelyn Cheng contributed to this report.