Financials analyst Dick Bove is telling investors to sell their bank stocks.
Bove, chief strategist for Rafferty Holdings' Hilton Capital Management, believes rising interest rates will ultimately crush bank profits — a scenario Wall Street needs to take more seriously.
"They don't have a clue. The market doesn't have a clue based upon the things that I hear," Bove said Monday on CNBC's "Trading Nation." "The bank stocks are going to go lower, and if you own some, you better lighten up."
According to Bove, the Federal Reserve's current rate hike policy will become detrimental to financials — particularly traditional banks.
"What we're seeing is the normal thing happen which is as interest rates go up, the value of these financial assets are coming down," he said. "Investors don't have a clear picture as to what the value of bank assets are. Bank capital in real terms is eroding."
The Financial Select Sector SPDR ETF, which tracks financials, is down about 1 percent over the last two months. Meanwhile, the 10-Year Treasury Note yield is soaring 37 percent over the past year. In just the last week, the yield is up 5 percent to 3.23 percent.