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Ahead: Short summer, go long Santa

Janet Yellen speaking on March 18, 2015.
Joshua Roberts | Reuters
Janet Yellen speaking on March 18, 2015.

If history is a guide for the future, the S&P 500 will pull back and defensive stocks will rise after the Federal Reserve raises rates, as expected this summer. But then as investors digest the rate hike—and the economic strength it represents—the stock market will recover to new highs by the end of the year with growth names leading once again.

Here's how to trade that scenario.