Andrew Slimmon is Morgan Stanley's lead senior portfolio manager on all long-equity strategies. On Friday, he was a guest on CNBC and argued there is "too much caution" in the market.
According to Slimmon, many investors are taking a cautious approach to the market, and this is evident based on the performances of certain sectors. He pointed out that during the first half of the year, utilities and telecom stocks gained 23 percent, while technology and healthcare stocks were trading lower.
Investors are just being cautious and allocating more toward more defensive sectors. This does, however, create a scenario where there are "too many people on one side of the boat."
Nevertheless, the investment pro sees the market moving higher from its current levels.
"I think what's going on is the market is beginning to anticipate the economy is accelerating and the acceleration is going to help the earnings in those cyclical areas that have not benefited yet," Slimmon explained.
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