Experts weigh in on what to do after the Fed's rate hike

  • The U.S. Federal Reserve raises interest rates 25 basis points.
  • Investors should want asset prices anchored in the real economy, says J.P. Morgan's David Kelly.
  • Rene Nourse of Urban Wealth Management sees opportunity in cybersecurity, banks and energy.
  • Allan Boomer of Momentum Advisors is buying two-year Treasurys.

The U.S. Federal Reserve raised interest rates 25 basis points on Wednesday, and three experts appeared on CNBC to discuss what they're looking at now.

J.P. Morgan's David Kelly warned that investors should want asset prices to be anchored in the real economy, and that stock prices are increasing while the real economy isn't keeping up.

That doesn't mean experts see a lack of opportunities in the market. Rene Nourse of Urban Wealth Management said she is watching the cybersecurity space. On top of that, she said rising interest rates will have a positive impact on banks. She's also keeping an eye on the energy sector.

At the same time, Allan Boomer of Momentum Advisors said he likes the two-year Treasurys. In fact, he says, he bought some yesterday.

The Dow closed down more than 100 points on Wednesday, following the Fed decision.


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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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