A Comment -- General Comments From an Expert (A Commentary)

Will it fall to 1%? Even if it approaches 1%, investors will get nervous, but she wouldn't sell everything. She expects financials will do better as tech is split between quality tech like Facebook and Google (good) and the super-high valuation tech stocks which won't do well. That said, she is terrible at trading on macro movements. She trades on micro. She does not trade on interest rate movements. If the economy is slowing, it will pressure rates as well as bank loan books. She remains long the banks. The banks will be good long-term with their attractive valuations.

The U.S. 10-year yield keeps falling We've had lower rates for a long while, so this means the Fed will likely taper, the economy is slowing and this is as good as it gets for growth. Rates saw we won't have a great GDP number coming up in 6-12 months. The Fed will make a mistake if they tape now, because it will slow the economy and need to reverse it at the end of the year. If rates rise, buy cyclicals and commodities, not large-cap tech. But if we see a staglfation scenario, then be in commodities. The trade that covers both scenarios is copper (like FCX) because industrial metals will enjoy demand anyway.