The Federal Reserve did not get much closer to raising rates in a statement that was nearly a carbon copy of its June decision. And that has some traders eagerly dusting off a familiar playbook.
"Remember that a year ago, 75 percent of the Street said we were going to get a hike in June. And in March of this year, the Fed took a dovish turn. ... If you take the same playbook from March, then those are the type of things that will do well when the Fed is pushing things out.," Larry McDonald, head of the U.S. Macro Strategies group at Societe Generale, said on CNBC's "Power Lunch" after the Fed's statement Wednesday afternoon
So how exactly can investors play for a Fed that stays on hold?
In that circumstance, Erin Gibbs of S&P Capital IQ would recommend "high-dividend-yielding companies, with a focus on utilities and REITs."
The logic here is simple—if the Fed keeps rates low, then sectors that investors use to generate yield will continue to look attractive relative to bonds, and will outperform.