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Veteran investor Michael O’Rourke is cautioning traders to back away from high-growth technology stocks as an eventual interest rate hike “plays out really well" for banks.

“Growth stocks have had an incredible run," O’Rourke, Jonestrading chief market strategist, told Bloomberg TV’s Surveillance on Monday. “We’re starting to see some cracks emerge that there’s probably better places to put your money going forward."

O’Rourke adds that a shift toward value stocks as interest rates tick higher may be necessary as elevated yields make the premium investors pay to hold high-growth companies unappealing. As for where traders should dump their money instead, O’Rourke says energy and materials are particularly attractive.

“You’re seeing some investors buy the commodities because they’re worried about the shortages that we’re seeing right now, and that scarcity value is making the sector more attractive," he said. “Whether it’s energy or materials, I think you want to be in those spaces for the time being."

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