This BlackRock strategist opposes a Fed hike. Here are the funds she recommends.

A BlackRock strategist is pushing back against the case for another Federal Reserve rate hike, arguing that the central bank's next move matters less than where investors position their portfolios. Gargi Pal Chaudhuri, of BlackRock, suggests staying invested in the artificial-intelligence sector while broadening exposure into themes such as quality and healthcare, according to the report.

The recommendation reflects a common portfolio approach: rather than making a single bet on the direction of interest rates, spread exposure across areas with different drivers. AI-related names have powered much of the recent market advance, but that concentration has also raised questions about how much of the growth is already reflected in prices. Quality companies — typically those with steadier earnings and stronger balance sheets — and healthcare, often viewed as more defensive, can offer a counterweight if leadership in the market shifts.

For observers, the key debate is whether the Fed tightens further or holds steady, and how that path affects richly valued growth stocks. Sector rotation, earnings trends and upcoming inflation data are the signposts worth watching.