Federal Reserve officials have grown increasingly more aggressive in their battle against inflation by raising interest rates in large 75-basis-point increments. In an October 18 note, Kostin outlined how to invest in each S&P 500 sector and cash in on the remaining upside amid inflation risks. "Our overweight sector recommendations are generally defensive and reflect the significant risks to earnings and valuation in an environment of elevated inflation and interest rates," Kostin wrote. Thanks in part to higher oil prices, energy is the only S&P 500 sector in the green year-to-date. Finally, an investment in Consumer Durables and Apparel "offers counter-balance of exposure to a group within a cyclical sector," Kostin wrote.

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