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How to play today's market: Pimco's Kiesel

With the United States economy getting stronger, there has become a divergence between the U.S. and the rest of the world that can be taken advantage of by placing the right bets, Pimco chief investment officer Mark Kiesel told CNBC Friday.

Specifically, he would invest in cyclical stocks and he'd go long the U.S. dollar versus the euro and the yen.

"We still think the dollar has quite a lot of room," Kiesel said in an interview with "Street Signs."

"The global economy outside the U.S. is not doing great …. Outside the U.S., QE is your only option."

Read MoreETFs minted to court the bullish US dollar

On Friday, China's central bank made its first interest rate cut in more than two years in an effort to spur growth. The European Central Bank also announced it has begun buying asset-backed securities.

In this environment, Kiesel likes housing because it is "very cheap on a relative basis" and inventories are very low, according to long-term charts.

Most important, he added, the consumer is strong.

"You've got declining unemployment. You've got rising income, low energy prices, low interest rates and a confidence from a Fed, which continues to create a wealth effect," he explained.

Read MoreEconomy, eager buyers drive high-end home sales

Kiesel also favors airline stocks. While the sector has recently benefited from low oil prices, he's not concerned about oil eventually rising.

That's because industry consolidation has led to significant pricing power for the airlines, and they now have $49 billion in ancillary revenues, he said.

"They're charging you to board early. They're charging you for a special seat. They're charging you for food, for luggage. They're charging you for everything," he said. "That's profits for the airlines and that's why we like them."

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