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Did Jerome Powell finally blink?

After today's Jackson Hole speech, it sure looks like it. Powell made it crystal clear: interest rate cuts are finally coming.

Why do we care?

Interest rates define the cost of money. When that changes, everything downstream shifts with it.

Keep in mind, I'm still incredibly bullish on tech. But with rate cuts now all but guaranteed, we need to prepare for new market leadership. 

Here are the three sectors I'm watching closely:

1. Small Cap Stocks

Many small caps are drowning in debt. They pay interest that eats up huge chunks of their cash flow.

But Lower rates? That's their lifeline. 

Companies can refinance at lower rates, reducing their interest payments.

The unprofitability problem doesn't disappear overnight, but it becomes much more manageable.

2. Healthcare & Biotech

COVID crushed healthcare stocks. They have yet to recover, despite being the market's second-largest sector. 

That creates opportunity. And I like biotech.

This subsector bridges our beloved technology with a wave of breakthrough medical innovations. 

Think AI-powered drug discovery, gene therapy, personalized medicine. The pieces are falling into place for a major rotation back into healthcare.

3. China (Yes, Really)

U.S. rate cuts can actually boost Chinese assets. 

How so?

When American yields drop, global money starts hunting for returns elsewhere.

Small-cap Chinese biotech and tech companies could lead this charge. 

They combine multiple tailwinds: the China rotation, the small-cap revival, and the biotech renaissance.

Honestly, the setup is getting too obvious to ignore.

That’s what I’ve got for you today. Have a wonderful weekend.

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