Ideally, an investment portfolio should pivot during changing monetary circumstances and underweight cyclical exposure as contractionary monetary policies are deployed. The reason for this is bound to receding spending power and the basic "need versus want" theory. Therefore, I identified the following three cyclical stocks that I'm bearish on during 2022's rising interest rate environment: Ford (NYSE:F), Tesla (NASDAQ:TSLA), and Embraer (NYSE:ERJ) The U.S. Federal Reserve raised interest rates by another 75 basis points earlier this week in an attempt to curb resilient inflation rates. The Federal Reserve's decision-making process is beyond the control of financial market participants; all that investors can do is adapt accordingly.
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