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Power Play: 4 sectors to avoid right now

Traders work on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images

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.

Lutts sees opportunities in health care, transportation, industrials and technology, but is negative on utilities, energy, materials and telecom.

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"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.