Federal Reserve Chair Janet Yellen said last month that the Fed will probably begin increasing interest rates later this year. So how should you invest in an environment of rising rates?

Ky Trang Ho, founder of Key Financial Media, gathered the recommendations of experts and provided them in an article for Forbes.

Jeff Reeves, executive editor at InvestorPlace.com, recommends buying Vanguard Short-Term Bond Index Fund (VBISX). "Short-term bond funds are much safer, because their more immediate maturity makes them less susceptible to rate changes," he writes. As for VBISX, "expenses are super cheap at 0.2 percent, and it has been far less volatile year to date."

Eric Wightman, portfolio manager at The Wise Investor Group, advises investors to avoid junk bonds. "Fixed-income money is supposed to be safe," he notes. "Look for high-quality bonds, municipal bonds or floating rate preferred stock." Risk should be minimized, he says. "I would not own high-yield — junk — bonds, or leveraged type investments. It is just a dangerous scenario. They are called junk for a reason."

Morgan Sizer, equity and alternative research and strategy at Concordius Capital Advisors, recommends cyclical stocks. "Sectors that typically benefit from a benign rising rate environment (good economy vs. fears of rising inflation) are cyclical sectors, which include financials, insurance companies, industrials and technology."

Meanwhile, though major stock indexes have hit record highs in recent days, the technicals aren't so hot, says Barron's columnist Michael Kahn.

"We have to wonder why the broad market is still within 2 percent of where it was in February," he writes.

"True, the short-term trend is still grudgingly to the upside since March, but money flows into major market exchange-traded funds such as the SPDR S&P 500 ETF Trust and the PowerShares QQQ Trust have been flat, at best," Kahn notes.

The technology and banking sectors have strengthened in recent weeks. But, "they cannot do it alone" for the stock market, he argues.

"Generals need soldiers to follow them into battle, and many areas of the market refuse to do so. This suggests the summer will be bumpy."

And what is the technical problem? "The market has started to narrow, while breadth has started to contract," Kahn explains.

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