What are the best investments in a rising interest rate environment?

Answer 1

Short car companies and home builders. Cars and houses are generally bought with borrowed money. If interest rates go up, then fewer people can afford to buy cars and houses.

Answer 2

It depends on your time horizon and risk tolerance for the investment.

The simple answer is "stocks" for the long term. Stick to low-cost index funds.

Stay with CDs for the short term, low-risk investment. "Ladder" the CDs s to capture the higher interest rates as rates increase over time. That is, don't put all your money in at once into one CD. Take a portion of it, say 20%, and purchase a short term CD. A month or two later, do the same thing. If rates increased in the interim, your money will be earning more. Keep doing this until all your money is invested. Then, you will always have money available to you within a month or two as your CDs expire. You will also be able to take advantage of increasing interest rates. Check www.bankrate.com to find the best values in short-term CDs.

Bonds are quite complex for the average investor and would require a sophisticated investment strategy depending on an individual's tax situation, risk tolerance, etc..

Answer 3

if rates go up, bonds go down. Open a futures account and short the T-bonds. Always remember to use stop losses

Answer 4

I would think bonds.