NEW YORK (TheStreet) -- All this talk about the Federal Reserve'snext rate move is keeping a lid on stocks, said Brent Schutte, senior investment strategist at BMO Global Asset Management.

"As long as we are hanging on every single word by New York Fed President Bill Dudley or Atlanta Fed President Dennis Lockhart, you are going to have these backs and forths on a daily basis and right now that's what you are having and what you should expect to continue," said Schutte.

Schutte originally forecast U.S. stocks would remain rangebound and volatile in 2015 due to central bank policy changes and a moderately high valuation.  He said his forecast remains in place and will likely remain so until after the Fed hikes and the economy proves it can stand it.

In terms of what exchange-traded funds to buy in the U.S. that correspond with a rangebound market, Schutte recommends the Powershares Buywrite ETF (PBP) - Get Invesco S&P 500 BuyWrite ETF Report.  The PBP writes call options against the U.S. stock market and will see options prices increase with volatility while returns accrue in a sideways market.  

Outside the U.S., Schutte said increased bank lending and confidence in the Eurozone are still supportive of a further improving economy.  He added that lower oil prices are stimulative and the weakened euro is helping exports. Similarly, he said, Japan is seeing continued progress on dislodging the corporate cash that has helped deflation become embedded in the system over the past few years.

"When you add the economy, the policy and the valuation together we continue to believe that Europe and for that matter Japan will outperform the U.S. for the rest of the year," said Schutte.

Regarding the emerging markets, Schutte said he is neutral to very slight overweight despite the recent choppiness because the valuation likely reflects many worries that currently exist.  In his view, emerging market economies will continue to struggle but lower rates and weaker currencies will help.

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