On Monday, 8/19/2013, U.S. stocks logged their first four-day losing streak of the calendar year.

Until recently, the idea of a pullback had begun to seem far-fetched.

The S&P 500 SPDR Trust (SPY) had been hitting high after record high with remarkable ease. Now the only “rally talk” is centering on how high longer-term bond yields might climb.

The higher the 10-year Treasury yield goes, the lower most market-based securities go.

The ugliest falls from grace have occurred in former safe haven segments like REITs, preferred shares and utilities.

I continue to emphasize that the assets most likely to succeed are those that are less tied to rate sensitivity as well as those that have defensive attributes. For clients, I have maintained an allegiance to exchange-traded vehicles in pharmaceuticals, aerospace and consumer staples sectors. More recently, hedge fund desire for Apple (APPL) ownership has increased the attractiveness of technology ETFs; funds like iShares DJ Technology (IYW) and Vanguard Information Technology (VGT) have some of the highest Apple (APPL) weightings.