The stock market has been rallying since October and is now positive for the year.
Cabot Wealth Management President and Chief Investment Officer Rob Lutts tells CNBC's"Power Lunch" on Wednesday equities could rally 5 percent or more in the face of rising rates.
"Electric utilities will be challenged by alternative energy [and] oil will be low for several years…avoid energy for now," Lutts said.
Meanwhile, the telecom space is very competitive and will be hurt by "disruptive technologies."
With materials, Lutts believes "slowing global growth [is] weighing on this sector."
Health care, transports, industrials, energy, materials and telecom are lower during trading, while utilities and technology are higher.