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Power Play: No hike, but add financials

A man walks by One Chase Plaza in lower Manhattan
Getty Images
A man walks by One Chase Plaza in lower Manhattan

Even though the Fed left interest rates unchanged on Wednesday, many Wall Street strategists say this is the time to be adding to financials, a sector that normally performs well when rates move higher.

Michael Farr, president of Farr, Miller and Washington, tells CNBC's "Power Lunch" on Wednesday he thinks companies offering higher prospects for earnings growth will perform better over the long-term. "We have been adding to bank positions, and we currently own BB&T, JPMorgan, PNC and Goldman Sachs," Farr said.

Read More FOMC leaves rates unchanged in September meeting

He also doesn't think the Fed will hike rates when the Fed Funds Futures has a very low probability of a hike. "As was the case prior to the Fed's first rate hike, we think the Fed will thoroughly prepare the markets prior to the next hike. There will be no surprises," Farr said.

Jamie Cox, managing partner at Harris Financial Group, also likes financials and believes the overall environment is good for stocks. "Current monetary policy worldwide is equity positive- lots of folks are underinvested in stocks; therefore, I would suspect as folks realize this reality, markets will much higher in Q4," Cox said.

BB&T Corp, J.P. Morgan, PNC Financial and Goldman Sachs are little changed during trading.