Power Play: Interpreting the Fed and Apple

The Apple Inc. logo is displayed at one of the company's stores in Hong Kong, China.
Jerome Favre | Bloomberg | Getty Images

Investors concerned about two things this week, when the Fed will raise interest rates and whether the Nasdaq is too heavily tied to the fortunes of Apple. The Dow, and Nasdaq have turned negative for the year and Apple is down two percent since the unveiling of the Apple Watch on Monday.

Curt Custard, Head of Global Investment Solutions at UBS Global Asset Management, believes the first hike will occur in the fall, but the Fed won't do too much, just normalize rates. Rate hikes will be "very gradual and data dependent," Custard told CNBC's "Power Lunch" on Thursday.

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On the issue of Apple, concerns about its size and impact on tech may be overblown.

"History shows very little evidence that sector peaks are related to the size of a sector's single largest component. In fact, history suggests investors looking for bubbles among sectors in the S&P 500 would be better served to look for sectors with broadening, not narrowing, market cap concentration," said Gina Martin Adams, institutional equity strategist at Wells Fargo Securities.

Apple higher during trading on Thursday.