Paul Britton, CEO of $9.5 billion derivatives firm, says the market hasn't seen the worst of it

cnbc.com:

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The market has seen tremendous price swings this year — whether it comes to equities, fixed income, currencies, or commodities — but volatility expert Paul Britton doesn't think it ends there. 

Britton is the founder and CEO of the $9.5 billion derivatives firm, Capstone Investment Advisors. He sat down with CNBC's Leslie Picker to explain why he thinks investors should expect an uptick in the amount of concerning headlines, contagion worries, and volatility in the second half of the year. 

(The below has been edited for length and clarity. See above for full video.)

Leslie Picker: Let's start out —if you could just give us a read on how all of this market volatility is factoring into the real economy. Because it seems like there is somewhat of a difference right now.

Paul Britton: I think you're absolutely right. I think the first half of this year has really been a story of the market trying to reprice growth and understand what it means to have a 3.25, 3.5 handle on the Fed funds rate. So really, it's been a math exercise of the market determining what it's willing to pay for and a future cash flow position once you input a 3.5 handle when to stock valuations. So, it's been kind of a story, what we say is of two halves. The first half has been the market determining the multiples. And it hasn't really been an enormous amount of panic or fear within the market, obviously, outside of the events that we see in Ukraine. 

Picker: There really hasn't been this kind of cataclysmic fallout this year, so far. Do you expect to see one as the Fed continues to raise interest rates?

Britton: If we'd had this interview at the beginning of the year, remember, when we last