The US economy can grow despite rising interest rates

Interest rates in the US have been at emergency levels since December 2008. With the first rate rise in over 9 years likely to take place later this year many investors are erring on the side of caution with the expectation of heightened volatility. Steve Johnson from Forager Funds says he has been largely avoiding interest rate sensitive stocks, however, he also thinks the US Economy could flourish in a rising rates environment. "I feel like there is an impact on confidence by having interest rates at emergency levels... I think that if they get them back towards 'normal' levels you may see the opposite of what people expect. That real businesses will borrow money and invest in growth for the future." Johnson says he actually hopes rates can move back to more normal settings because if there are more market dislocations while rates are at 'emergency' levels there are few tools available to buffer the impacts. Watch the full interview below: