'The economy can do well with higher rates' -CIO

STORY: Despite Microsoft's lackluster quarterly outlook, Pagliara said that over time it and other companies that are "cash rich and very cash-flow rich" will start to "pick up some earnings per share because they'll have less CapEx expense and they'll be able to drive some revenue through the infrastructure."

"We've lived with much, much higher rates and inflation the last 30, 40 years," Pagliara continued, "so I think the silver lining in all of this is we're going to be able to adjust, and the Fed will be able to stay on track and focus on a longer-term problem with inflation, and companies will do fine that are well-capitalized and have good business models."