July's Consumer Price Index (CPI) reading revealed inflation was cooling, fueling Wall Street's attitude that the Federal Reserve will make its first cut to interest rates in September, but what does that mean for the stock market? How should investors manage their portfolios for the coming rate change?

Mahoney Asset Management CEO Ken Mahoney joins Wealth! to give insight into what the July CPI data means for investors and how to manage portfolios moving forward.

Mahoney suggests sticking with large-cap stocks: "We still think big is better. You look at the small-cap Russell [2000 index] (^RUT). It had some making-up to do coming in July. The Nasdaq (^IXIC) is up 24%. Small cap Russell is unchanged. Of course the big disparity. And we saw that kind of narrow a bit. But, again, when you go through the Russell 2000, 70% of those companies do not make money."

He follows that up, affirming: "I look at other industries, the autos, airline retailers, there's not a lot of excitement there."

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This post was written by Nicholas Jacobino