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When the Fed Responds, These Stocks Will Correct

My biggest caveat here is that all this great news is already priced into Pfizer's share price, which is slightly below its $23.80, 52-week high established intra-day on Friday.

With the price at current levels it lowers the dividend yield to below 4%. It was less than a year ago that investors were chasing Pfizer's 5.25% yield when the price was down below $16.70. Today's share price means the stock has climbed 40% in less than 12 months. Watch out below!

The same could be said for other Big Pharma stocks including Bristol-Myers Squibb (BMY) and Abbott Laboratories (ABT), whose price has risen above $64 while the yield-to-price is down around 3.2%.

That's a heck of a better yield than a seven-year Treasury, which yields only 0.90%, or the 10-year Treasury currently at a historically low 1.41%.

Yet, at some point (most likely after the next helping of MQE) a return of what the Wall Street media has called the "risk-on trade" will surge and a rotation out of the historically higher yielding stocks like REITs and drug companies will happen in a New York minute.

If you have the foresight and guts to sell at these high levels, you'll probably have the chance to buy them back after the correction in this "risk off" stocks runs its course. You'll then have a higher yield-to-price dividend and the chance to catch the next run-up in the mortgage REITs and the big drug stocks.

At the time of publication the author was long NLY.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.

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