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Suppose you want to bet on interest rates rising -- would buying value stocks and shorting growth stocks be a good way to do it? (With the idea being that, if rates rise, future earnings will be discounted more and present earnings valued relatively more highly.)
And separately from whether long-value-short-growth would work, is there a more canonical or better way to bet on rates rising?
Just shorting bonds, perhaps? Is that the best you can do?
I'm unsure why you'd expect anything to be better than pure plays such as shorting bond or Eurodollar futures.
I expect the effects on value minus growth to be rather small.
If you're betting that rising rates will be due to increased inflation, more than rising real rates, then it's worth looking at companies that have borrowed at low long-term rates. Maybe shipping companies (dry bulk?), homebuilders, airplane leasing companies?