Tech stocks could get hit by rising rates but Goldman says these names in the sector are safe

Bank of America's chief investment strategist is bearish on 2022, sees a rates shock

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"Even with a little bit of bumpiness in stocks, you have to be wanting to hold real assets in this scenario. And, stocks are real assets," he noted. "All that which in the long run is going to maintain value."

But it depends on the company.

He notes the inflation backdrop would create headwinds for tech high-flyers in the Nasdaq, which is at record highs and crossed 16,000 for the first time ever on Friday.

"If interest rates go up, the very high-priced stocks which discounts cash flows way into the future... [are] going to be affected because of the discounting mechanism," he added.

Siegel attributes growth stocks' record strength to Delta variant fears and falling Treasury yields. He predicts the Covid-19 surge will subside as more people get boosters.

"That has stopped the so-called reopening trade," he said. "Value has gotten very cheap."

If Siegel is right about an abrupt Fed policy change, he sees Wall Street getting over the shock of it fairly quickly and a new desire to own dividend stocks and financials in 2022.

"[Financials] have been selling off recently with the lower interest rates," Siegel said. "They could come back."

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