Telling somebody they should just suck it up and increase their risk tolerance is kinda like telling a fair skinned red head that they should just lay out in the sun and get a tan. Risk isn't for everybody.
Stable Value Funds, while stable, are also made up of a stew of insurance company wrap contracts and other mystery meat that if you follow the "if you don't understand it enough to explain it to somebody else, don't buy it" rule, you likely won't buy it. Aside from the complexity I haven't seen anything to suggest they are riskier in a raising rate environment. Now that rates are leveling off the "are they good in a raising rate environment" becomes a non-issue.
Stable Value Funds, while stable, are also made up of a stew of insurance company wrap contracts and other mystery meat that if you follow the "if you don't understand it enough to explain it to somebody else, don't buy it" rule, you likely won't buy it. Aside from the complexity I haven't seen anything to suggest they are riskier in a raising rate environment. Now that rates are leveling off the "are they good in a raising rate environment" becomes a non-issue.