On the 8th day of Fedmas, Janet Yellen sent to me...

Janet Yellen as Santa
H. Armstrong Roberts | ClassicStock | Getty Images; Getty Images

During each of the 12 trading days before the Federal Reserve's interest rate decision on Dec. 16, CNBC Pro is highlighting a single strategy that should work if the central bank hikes rates, as many on Wall Street expect. We found these trades using Kensho, a powerful tool used by hedge funds to analyze historical market data.

In the holiday spirit, we will call this series the "Twelve Days of Fedmas." Wednesday marked the eighth day so we've added another line, "Eight Northrop Grummans."

On the eighth day of Fedmas,

Janet Yellen sent to me:

Eight Northrop Grummans...

Seven SOX a swimming ...

Six ETFs-a-leveraged ...


Four Lincoln Nationals ...

Three ETNs ...

Two General Motors ...

And a pair trade in Curr-en-cies!

Traders are betting big that the central bank will raise rates next week. If the Fed move sparks an increase in long-term rates, there are 12 trades and more for investors, if history is any guide.

CNBC Pro ran the numbers on Kensho and found that aerospace and defense stocks do well under a scenario of rising long-term interest rates for U.S. markets. We looked at all the one-month periods of significant moves higher in rates over the last decade.

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