$NVIDIA(NVDA.US)$Direxion Small Cap Bull 3X(TNA.US)

Last night, I made a portfolio adjustment, reducing half of my positions in Nvidia and Amazon. I opened positions in XBI and TNA. The logic is that the expected US CPI was 3.1%, while the actual figure was 3%, which was better than expected, and the risk of recession has increased. Additionally, with Trump's chances of winning significantly rising, the probability of a rate cut in September has greatly increased. A rate cut would benefit XBI because biotech companies require substantial financing for R&D, and lower rates would reduce their financing costs. A rate cut would also benefit TNA. Small-cap stocks have higher risk appetites, and a rate cut equals increased liquidity and more risk capital. Previously, funds crowded into the "Magnificent Seven" for safety. With rate cut expectations, we can anticipate a style shift in the US stock market, with funds moving from large-cap stocks like Nvidia and Amazon to small-cap stocks. Small-cap valuations are generally at low levels, while large-cap valuations are not cheap. Under rate cut expectations, small-cap stocks have higher growth potential.