What short term investment instruments would be a good option when the Federal Reserve funds rates are anticipated to rise?
My understanding is bonds will decrease in value since the newer bonds with a higher rate would be more valuable, and only if you hold them for a long time or until maturity would you see little negative impact from the increased rates.
Stocks will also suffer as some people will shift investments from stocks to bonds after a federal rate increase.
What types of investments would be unaffected by a Federal Reserve rate increase?
Are there any types of bonds that are general not tied to or influenced by federal rates? I suppose foreign bonds would be minimally affected.
I realize a comprehensive list would be too broad of an answer, but perhaps a few examples or general categories, and why each would be unaffected, would be really helpful in gaining a better understanding of these mechanics.