With President-elect Donald Trump setting a new direction for the economy, an interest rate hike in December could be harmful to low-growth businesses, strategist Steven Rees said Monday.
Rees, global head of equity strategy at JPMorgan Private Bank, said Trump's plan could be a major hurdle to bond proxies, or companies in industries like telecommunications and utilities, as well as parts of the consumer staples sector.
"The companies that don't really grow that pay a high yield, those are the companies we want to avoid here," Rees told CNBC's "Squawk Box."
Still, considering Trump's promises for significant tax reform, repatriation of capital and rebuilding infrastructure nationwide, Rees said there may be good opportunities for upside regardless of how quickly rates rise.
"The market is definitely focusing on the pro-growth, positive parts of the plan," said Rees.