Investors eagerly await a potential interest rate cut from the Federal Reserve at its September FOMC meeting next week, but uncertainty could likely persist in markets .

AlphaSimplex Chief Research Strategist and Portfolio Manager Katy Kaminski joins to discuss her market outlook in light of this expected fiscal policy shift.

Kaminski notes that the rate cut debate has shifted between 25 to 50 basis points. She emphasizes that "the jury is still out," but regardless of the cut's size, "the Fed is changing course," which will impact various aspects of the economy, presenting "both an opportunity and a challenge for investors."

According to Kaminski, sectors like borrowing, real estate, and consumer staples stand to benefit from a rate cut. She also anticipates a market rotation away from sectors such as tech. However, she cautions investors that the fight against inflation isn't entirely over.

"I think we're going to have to watch for the potential that inflation will go up in the future. And we need to think about sectors and areas of our portfolios and our investments that will be actually accretive during an inflationary period. Gold (GC=F) is a good example," Kaminski tells Yahoo Finance.

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This post was written by Angel Smith