Kevin O'Leary says that there are plenty of good places to "hide" when interest rates rise

INVESTORS CAN MAKE MONEY when U.S. interest rates rise by seeing S&P 500 companies "raise prices" and "hold their margins," Kevin O'Leary told news.

"There's a lot. It's a good place to hide when you get a 2% dividend," the leading investor told Squawk Box Asia on Thursday.

O'Leary's comments come after the Federal Reserve raised interest rates by half a percentage point on Wednesday, according to market expectations.

Fed Chair Jerome Powell said a 75 basis point rate hike is "not something the commission is actively considering" despite market expectations strongly supporting the Fed to hike three-quarters of a percentage point in June.

Similarly, O'Leary questioned the sharp gains, adding that the market is still "in a growth cycle."

"I don't think that's going to happen. You have many concerns in Europe; you have the Russian invasion of Ukraine. They have problems with the supply chain around wheat and the receipt of goods because Ukraine doesn't supply winter wheat," he said.

"There are things to worry about that I think you are holding back the Fed. And this is your friend. "I think you need to answer is, 'Can Powell launch a plane for a soft landing?' If you think he can stay like me for the long term," said the venture capitalist, who also co-hosts Shark Tank and heads ETF O'Shares.

"The market will see a lot of volatility through the end of the year -- more days than 1,000 points," he said, referring to the Dow Jones Industrial Average, which fell 1,063 points on Wednesday after a rate hike.

The impact of inflation on cash and higher interest rates on longer-term bonds -- such as the 10-year Treasury note -- also left people with some respite, O'Leary said. He said he would focus on the stock market and buy shares in companies with "some kind of price power."

"It's the most sustainable, the most protective asset. Stocks are still performing in times of inflation... You might argue that this isn't enough power for price discovery, but it's much better than long-term bonds. And certainly better than money. now." When asked where investors might find the most exciting results in today's markets, O'Leary narrowed the topic to energy and health care stocks.

"I think Energi has been a real leader in delivering dividends, some of these stocks, and now it's up to 7.8.9%," he said.

"People are worried about what will happen to oil prices. But Russian sanctions will likely keep prices where they are. [And] there is more production in the United States."