Trader: Here's how to play a Fed rate hike

A worker measures wood for a house under construction at the KB Home Vineyard Crossing Community in Livermore, California.
David Paul Morris | Bloomberg | Getty Images

A looming Federal Reserve rate hike and a slowdown in homebuilding make the real estate sector of the stock market a dangerous place to be right now, said Jeff Kilburg, founder and CEO of KKM Financial.

U.S. housing starts fell 11 percent to a seven-month low in October, the Commerce Department announced on Wednesday. And a release of the minutes from the Fed's last meeting suggested voting members are ready for liftoff in December.

But there's one place to put your money that could thrive with higher interest rates, said Kilburg.

Watch the video below to find out how the trader is setting up his portfolio for the months ahead.

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