Dude if you think bonds will get hammered when rates rise don't u think equities wil her hit the same? It's common sense man. Sell stock and stay in cash for now. Your patience will be rewarded.
Not all equities will react the same when rates inevitably rise. Some industries tend to react positively.
Many bonds that get hit hard never make it back to where they were until they reach maturity (assuming they do). And again, all bonds are not the same. Treasuries will tend to react differently from investment grade corporates, which will tend to react differently from high yields. And short term debt is less affected than longterm debt.
You cannot tell me that a small cap biotech that announces a result of a drug trial or FDA decision won't move a great deal in either direction in a short timeframe on the good or not so good news, regardless of whether rates are at zero or 5% or whatever. Puts and calls. Maybe a small long stock position if the company is pretty sound fundamentally. Just one example...
Bottom line, I do not have a crystal ball and therefore do not ever try to convince myself that I'm anywhere near 100% certain of this or that happening, particularly in the short term. Anyone who tries to convince me that they are certain of this or that is not someone I can take seriously after 21 years of investing. You're going to be right on the money on occasion, but most of your predictions will be at least a little off. And some will be dead wrong.
If I'm right 51% of the time in the short term, I'm thrilled. But I'm more focused on trying to be 90+% right in the longer term, and having my right investments be far more right than my wrong investments are wrong.
Some money in long equities and call options, some in commodities, some in cash, some short in equities and long in put options, etc. I sometimes also sell a few covered calls on occasion. I'm never, ever 100% in cash, or 100% long stocks, or 100% commodities or whatever, although I certainly do play with the allocations from time to time.
Many of my long stock positions can be pretty volatile. These are generally hedged with puts. I may sell them off partially or entirely when I feel it is warranted. Of course every realized gain is a taxable event in a taxable account.
Larger, less volatile companies that are overpriced like GM and recently GE are usually actually shorted. More volatile companies that appear to be way overpriced like Amazon, Netflix, and Tesla (and thousands of others) are handled more carefully via put options.
