Rate-Cut Rotation 2024: Rebound Bets on Rates, China, Clean Energy & Cannabis

The Fed just started its easing cycle with a jumbo 50bp cut and the S&P closed at a record (Reuters, September 19, 2024), while small caps have started to outperform (Barron's, September 20, 2024). I want to own what benefits from lower rates and has been left for dead: long Treasuries, REITs, Chinese internet after the PBoC's September 24 stimulus package, residential solar and hydrogen that got crushed by 5% rates, and a cannabis name ahead of the DEA rescheduling hearing scheduled for December 2 (Cannabis Business Times, August 27, 2024). This is a 12-month tactical rebound portfolio, not a core holding; several of these companies burn cash and a few could go to zero. I size the speculative names small and expect the rate-sensitive sleeve to do the heavy lifting. Risk class speculative.