Buckle up and mark your calendars for Dec 16! Chances are high that the interest rate is going uphill.

Janet Yellen, the Chair of the Board of Governors of the Federal Reserve, is confident that the current stability witnessed in the U.S. economy will enable it to brave the onslaught of a raised interest rate. Moreover, a solid 97% of business and academic economists (surveyed by the Wall Street Journal) had predicted the hike. Consequently, investors are betting big in favor of the rise, which will be effective once the Fed announces the rate tomorrow.

In simple economics, this would be dire for the investment world, but in reality several dynamic factors play a critical role. Central banks’ raising their interest rates to spur economic growth and control escalating inflation rates is one such feature.

Going forward, however, the hike may create some turbulence in the U.S. economy. The impact may even spill over to the global stock market. That said, not all sectors across the economy will face the same amount of heat of this interest hike.

It has been observed historically that rate hikes boost stock returns. According to an article in money and markets, “if we look at the the last six Fed Funds rate tightening cycles, the S&P 500 Index posted above average gains of 9.8% on average nine months after the first Fed rate hike. That’s well ahead of the average 9-month gain of 7.2% for all periods going back to 1983.”

Thanks to the recent growth in the U.S. labor market that has lowered unemployed workers’ rate per job opening to 1.5 from 6.0 (in 2010), the purchasing power of U.S. citizens has gone up reasonably. This has naturally pushed up domestic spending by 3%. Given such positive trends, we believe, investors will not be shy to spend on sectors that exhibit strong fundamentals. To add to that, these sectors are expected to grow further, as rising rates signal robust economic growth.

In fact, sectors like Finance, Technology and Consumer Discretionary have historically shown strong positive correlation to interest rates. Read on to know why we consider these sectors our favorites.