David Dietze, president of Pointview Financial Services, told CNBC’s “Morning Call” that rising interest rates will force a healthy reallocation of assets and be good for the market in the long-term.
“We’re cautious now,” Dietze said. “If you’re a bond investor, you can now get an interest payment that’s about 10% greater than it was three months ago. Meanwhile, look at the stock market. I’ve got to pay 15% more for the same merchandise I could have gotten three months ago. It’s in the cards here for a reallocation, which I think is going to be healthy for the market.”