After four years of consistently rising stock prices and falling bond yields, we have seen major shifts in the capital markets over the past two months. These changes are likely to have far reaching effects on some seemingly unrelated asset classes around the globe. For some asset classes, like large high-quality U.S. stocks, these changes should be highly beneficial. Meanwhile, they will be quite detrimental for others such as bonds and emerging market stocks. We have been anticipating this shift for some time and have positioned our client accounts accordingly.