Power Play: Betting on a better second-half

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The Dow is only up one-percent this year and the economy contracted in the first quarter, but better days are expected for the second-half.

Kate Warne, investment strategist at Edward Jones, tells CNBC's "Power Lunch" on Tuesday she anticipates a rebound in Q2 GDP and growth for the remainder of the year.

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"Consumers are becoming more confident. Lower oil prices and better job growth can translate into higher spending in the rest of the year. In the U.S., headwinds from the strong dollar and lower oil prices are diminishing," Warne said.

She also believes any rate hike from the Fed won't derail stocks.

"Although the Fed is likely to start increasing short-term interest rates in the second half of the year, its moves are likely to be slow and small. Historically, stocks and bonds have generally performed well when the Fed makes its first move," Warne said.

She sees an opportunity in broad-based international stocks.