The stock market should continue to move higher thanks to a strong economy, investor Kevin Mahn told CNBC on Wednesday.
In fact, in the first quarter annualized earnings growth was over 20 percent, wages grew over 2.6 percent at an annualized rate and unemployment is now at its lowest point since 2000, he said.
"We are at the beginning stages of a new bull market — and this bull market is going to be driven forward by earnings growth and economic expansion as opposed to that 9-and-a-half-year-old secular bull market that was driven by central bank accommodation," the chief investment officer at Hennion & Walsh told "Power Lunch."
U.S. stocks closed higher on Wednesday, with energy shares jumping on a strong rally in oil prices. The move higher followed President Donald Trump's decision to pull the U.S. out of the Iran nuclear deal.
Meanwhile, the 10-year Treasury broke above 3 percent, a key psychological level that puts markets on edge.
However, Mahn isn't concerned about rising rates. He said investors just need to position themselves properly.
"Rising rates are a sign of a good strong healthy economy," he said.
Michael Farr, however, admitted the bond market action "does scare me a little."
The yield curve, which tracks the difference between longer- and shorter-term bond yields, is flattening, meaning they are getting closer together. Investors are concerned it may invert, which means long-term Treasury yields would be lower than short-term yields. Historically, when that happens, an economic recession has usually followed.
"They can tighten too much. I think that they can choke out growth, and it does have me nervous," he said.
That said, right now he's still betting on stocks — he's just expecting more volatility.
— CNBC's Fred Imbert contributed to this report.