The consensus view is for the Fed to start raising interest rates in September, but it's important for investors to stay sharp now.
Kristina Hooper, U.S. investment strategist at Allianz Global Investors, tells CNBC's "Power Lunch" on Friday active investing is critical. Hooper believes this rate hike cycle will be different than others because we will be the only ones tightening and bond yields will likely continue to rise.
But she says this is not necessarily bad for equities. "In this environment, investors should not hide in cash if they have a long enough time horizon. Look to European equities for value (albeit hedging currency in some way), Hooper said.
It's also important to focus on dividends globally. The "best solution may be a broadly diversified asset allocation product that enables investors to pivot and turn as risks and opportunities present themselves," Hooper said.
The pan-European Stoxx 600 index was down more than one percent during trading.