Power Play: Time to buy high-quality, defensive names

A Microsoft store in New York.
Scott Mlyn | CNBC
A Microsoft store in New York.

In year seven of a bull market, the smart move is to rebalance your portfolio, regardless of what the Fed decides on the fate of interest rates.

Michael Farr, president of Farr, Miller & Washington, tells CNBC's "Power Lunch" on Thursday many investors have forgotten the pain of past plummets.

Read MoreS&P tries to hold above 2,000 as Fed decision looms

"After long uptrends, investors focus on the gains they may be missing and not on the principal that they were not long ago desperate to protect," Farr said.

He believes it is time to be cautious, disciplined, dispassionate and wise. Farr recommends shifting into high-quality, defensive names such as Wal-Mart, Chevron, Microsoft and PepsiCo.

"The average dividend yield on these stocks is 3.4 percent, which is well above the 2.2 percent yield for the S&P 500 and is about 50 percent above the yield on the 10-year Treasury note," Farr said.

Wal-Mart, Chevron, Microsoft and PepsiCo are all higher during trading.