BlackRock's Rieder sold some Tesla, says it's time to take chips off in some high-fliers

Key Points
  • BlackRock's Rick Rieder said he sold the last of the Tesla shares in funds he manages at around $1,000 and sees the stock's rapid ascent as a sign of market froth.
  • Rieder has been a fan of the stock but says it and some other sectors are moving on momentum, not valuation.
  • Rieder said the broader market is not priced too high, but he believes it is time to 'take chips off the table' in some sectors.

BlackRock's Rick Rieder said he sold Tesla shares at around $1,000, and the stock's rapid surge is a sign of market froth.

"I think it's a barometer for the speculation you're seeing in some of these high fliers. Some of this retail trading activity you're seeing in some of these names is extraordinary," said Rieder, chief investment officer of global fixed income and head of the global allocation investment team in multi-asset strategies.

Rieder, appearing on Squawk Box, said momentum has overtaken valuation in some parts of the market.