Power Play: Best bets while waiting for a rate hike

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

How you invest this year depends on when you think the Fed will raise interest rates.

Stephen Wood, chief market strategist at Russell Investments, tells CNBC's "Power Lunch" on Friday the lift-off will likely be in September.

Wood is looking for the central bank to hike rates by 25 to 50 basis points, but what he's focused on is what the Fed does following that move. "After September, that becomes interesting. The Fed becomes data dependent after the first rate hike," Wood said.

Read MoreWhy Europe might delay a Fed rate hike: Buffett

Even with concerns about when the Fed will start tightening, you can still make money in this market.

Sarat Sethi, managing director and principal at Douglas C. Lane & Associates, is betting on stocks that sell at a big discount to the market. He likes the airlines sector, specifically American and United Continental.

"Both have been sold off as oil has risen, but I believe that the market is underappreciating the change in their business model. They are focused on profitability and not just growth going forward," Sethi said.

American Airlines and United Continental are up about three percent during trading.