The market's bull run is not over and stocks will be higher at the end of the year, according to Bob Parker, Senior Advisor at Credit Suisse.
"The extent of the rally is now going to be modest. We've moved out from the very strong rally in 2009 and the second half of 2010 into now what is essentially an equity market which is grinding higher," Parker told CNBC on Thursday.
"I do think (for) the rally in equity markets, short term, one has to be cautiously positioned. That means a focus on defensive sectors, on high-dividend sectors. I think it is inevitable that at least for the next two to three months, the underperformance of emerging markets relative to developed will continue probably until the middle of the year," he added.
But he warned that the run will not be without its share of headwinds.
Parker cited higher oil prices and the expectation that the European Central Bank raising interest rates as stumbling blocks.
"Other asset classes, whether it be fixed income, whether it be money markets, whether it be real estate, frankly, are not attractive," he said.