Question: With rising interest rates, is it actually better to invest in stocks or in bonds? 

Answer: If the market expects interest rates to continue to rise, the value of bonds will continue to decline. If you don't understand why, you should not invest in them. (It is because the bond price reflects the 'discount' from final bond payment based on the prevailing interest rates.)\n\nShares, in general, perform worse in periods of high interest rates.\n\nBut this is where your skill as an investor comes in. Research for companies who you expect to perform regardless of the the state of the economy. Read Philip Fisher's "Common Stocks and Uncommon Profits" to learn some of the basics of investment used by Warren Buffett.
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