A Federal Reserve rate hike will have "absolutely" no impact on the value of equities, but because it will nonetheless move some stock prices, investors should be prepared to scoop up names that overreact, market pro Charlie Bobrinskoy said Friday.
That rate increase could come as early as next week, when the Fed holds its September meeting.
"Because there's so little liquidity in the market and the Volker rule, stocks are going to move more than they should," the vice chairman and head of investment group at Ariel Investments said in an interview with CNBC's "Power Lunch."
If the central bank announces a rate rise, Bobrinskoy would watch out for attractive interest rate-sensitive stocks. For instance, KKR usually gets hit when rates increase, even though it has no impact on the business, he said.
On the other hand, if rates remain flat, investors can take advantage of the likely drop that will occur in bank shares. Bobrinskoy would also look to sell yield-sensitive stocks like real estate investment trusts, which he believes are already overpriced and will likely trade up on any no-rate-hike news. In addition, long-term bonds should be sold, he said.