Pro: 'The Market Can Handle Rate Increases As Long As Earnings Returns'

Investors are naturally concerned that a Federal Reserve rate hike would mark the end to a multi-year bull run for stocks. According to Wells Capital Management's Jim Paulsen, these fears could be overblown from at least a historical perspective.

Speaking as a guest on CNBC Thursday, Paulsen said the market has always "paused" when the Federal Reserve implements the first rate hike of a recovery cycle. He added that the Federal Reserve "perpetuated this process" for over two years when it quit its quantitative easing program in 2014.

Related Link: Fed Leaves Rates Unchanged, Statement Signals December Hike

As such, the Federal Reserve is "keeping us right at the starting line" which is "probably the worst place for the markets to be."

"I wish they would get on with it," he said in reference to a rate hike. "I hope they do in December. I think the market was ready for it."

He expanded that a rate hike announcement during September's meeting would have naturally created a "knee jerk reaction" but the markets would have "recovered and done okay."

Paulsen said it was difficult for the Federal Reserve to raise rates in prior years when earnings growth stagnated. However, Paulsen is expecting positive earnings growth in the bottom half of 2016 and the "market can handle rate increases as long as earnings return a little bit."