qandaQ: How do large cap funds perform in times of rising interest rates?

Q: Compared with the S&Ps500, how do large-cap value stocks perform in times of rising interest rates? 

A:  During the period from 1973 through 1981, inflation was 9.2%. During the same period the S&P 500 compounded at 5.2% and the large cap value 12.8%. So, for that period the S&P 500 lost money, after inflation, and the large cap value made money. My favorite asset class – small cap value – compounded at 17.4% before inflation.