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Power Play: What the market is expecting from the Fed

Federal Reserve chair Janet Yellen prepares to testify before the House Financial Services Committee on Capitol Hill in Washington, DC, on February 10, 2016.
Nicholas Kamm | AFP | Getty Images
Federal Reserve chair Janet Yellen prepares to testify before the House Financial Services Committee on Capitol Hill in Washington, DC, on February 10, 2016.

The Dow and S&P 500 are on track for their fifth gain in six sessions, with the Dow about 1.5 percent away from its all-time high set last May. But will the Fed meeting next week derail the market rally?

Joe Tanious, principal and investment strategist at Bessemer Trust, tells CNBC's "Power Lunch" on Tuesday the Fed and Wall Street are not on the same page right now.

"There's a disconnect between the Fed's dots (two hikes this year) and market expectations (maybe one, later in the year)," Tanious said.

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He's believes the Fed needs to manage its message over the coming weeks if a rate hike is planned for June or July. "The last thing it wants/needs is to create financial stress as a result of mismanaging expectations," Tanious said.

John Buckingham, chief investment officer of AFAM Capital, advises investors not to fret about what the Fed will do this year.

"We like what the historical evidence has to say about the long-term performance of value stocks, like those that we favor, in the years following Fed liftoff! Value stocks historically have outperformed growth stocks, but the annualized differences are even more pronounced on average for the two-, three- and five-years following the first rate hike," Buckingham said.