A U.S. interest rate cut cycle typically favors assets that benefit from cheaper capital, improved liquidity, and increased risk appetite. Stocks, particularly in sectors like technology, real estate, and high-yield corporate bonds, often outperform due to reduced borrowing costs and increased economic activity. At the same time, safe-haven assets like gold and emerging market equities gain from a weaker dollar and global capital flows. Investors can adjust their portfolios to capitalize on these trends by focusing on sectors and asset classes that thrive in an accommodative monetary environment.