Kensho: How to trade a hawkish Fed

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters

Sentiment into the Federal Reserve's announcement and Chair Janet Yellen's news conference Wednesday is for a more hawkish tone out of the central bank. So what can investors buy on this thesis with history as a guide?

Using Kensho, a tool designed to quantify historical market events, we looked at which securities perform the best in rising rate environments over one-week periods during the last decade, assuming that a hawkish Fed would cause a short-term increase in Treasury yields.

We also ran the numbers on falling rate environments.