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Power Play: What to avoid after the Fed leaves rates unchanged

A trader works on the floor of the New York Stock Exchange.
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Stocks are selling off the day after the Fed left interest rates unchanged. But John Buckingham, chief investment officer at AFAM Capital, tells CNBC's "Power Lunch" on Friday, stocks still provide generous income streams compared to fixed income, but it is important to diversify.

"We very much remain optimistic on the long-term prospects of our broadly diversified portfolios of undervalued stocks," Buckingham said.

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He has positions in all 10 of the S&P 500 sectors, but there are sectors he's decreasing his exposure to in this environment.

"We are modestly underweight in consumer staples, financials, health care, telecom and utilities," Buckingham said.

He is overweight consumer discretionary, energy, industrials, materials and information technology.

Consumer staples, financials, health care, telecom, utilities, consumer discretionary, energy, industrials, materials and information technology are all lower during trading.