Digital Original

History says investors should quit worrying about rising rates 

Even with a sharp rise in rates, the market has a good chance of rising

Stocks dropped again on Monday, adding to the losses from the previous two trading days. Sellers have been out in abundance, worried about the sharp rise in interest rates. But if the trend continues and rates continue to rise through October, history shows there may not be anything to be afraid of.

Since 2010, the 10-year yield has jumped by at least 25 basis points in a 30-day period 14 times. During these moves, the markets tend to move significantly higher: with the Dow, S&P and Nasdaq all gaining much better than 3 percent - the three trading positively 86 percent of the time.

Digging into individual sectors, some clear outperformers emerge. The Energy, Tech and Financials sectors all post average gains in excess of 4 percent.