Power Play: Hedge the Fed with financials
Stocks are sliding on Monday as investors await central bank meetings this week.

Quincy Krosby, market strategist at Prudential Financial, tells CNBC's "Power Lunch" central banks are still the main market drivers right now.

"Central bank liquidity [is] still the primary catalyst for these levels. Does the Bank of Japan move this week and does the Fed continue to suggest a rate hike this year need to be justified by even stronger [economic] data," Krosby said.

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In this environment, Krosby likes small and mid-cap financials if rates rise and also if rates don't rise.

Michael Cuggino, president and portfolio manager of Permanent Portfolio Funds, believes the likelihood of any action at the Fed meeting this week is remote.

"Pay attention to the words, as they talk a lot without saying anything lately," Cuggino said.

He also likes financials and one of Cuggino's top picks is First Republic .

Financials are down 1 percent year-to-date, but First Republic is up nearly 9 percent.