Core Viewpoint - The Amplify Seymour Cannabis ETF (CNBS) has experienced significant growth, reaching a 52-week high and increasing by 199.07% from its 52-week low price of $13.96/share, indicating strong momentum in the cannabis sector [1][2]. Group 1: Fund Performance - CNBS employs an active strategy to provide diversified exposure across the U.S. cannabis ecosystem, charging 76 basis points in annual fees [1]. - The fund has a positive weighted alpha of 19.45, suggesting potential for further gains in the near term [3]. Group 2: Market Drivers - The cannabis sector is gaining renewed attention due to President Trump's plan to ease federal regulations on marijuana, which could serve as a significant policy tailwind [2]. - Reclassifying marijuana to a lower-risk category could enhance research funding and improve access to capital by reducing legal constraints [2].

Market Overview - Wall Street experienced mixed performance last week, with the S&P 500 down 0.6%, the Dow Jones up 1.1%, and the Nasdaq down approximately 1.6% [1] - Tech stocks faced significant pressure, impacting the Nasdaq-100 and S&P 500, with Roundhill Magnificent Seven ETF (MAGS) down 1.7% and State Street Technology Select Sector SPDR ETF (XLK) down 2.5% [1] Tech Sector Performance - Oracle's shares fell 14% due to revenue misses, negatively affecting related AI companies like NVIDIA and Micron [2] - Broadcom's stock dropped about 11% despite strong earnings, raising concerns over high capital expenditures and delayed AI revenue realization [2] Federal Reserve Actions - The Federal Reserve implemented its final rate cut of the year, lowering the benchmark federal funds rate to a range of 3.5% to 3.75% following a divided vote [3] - The Fed's outlook for 2026 appears more cautious, projecting only one rate cut next year, consistent with previous forecasts [4] Winning ETF Areas - **Cannabis Sector**: Roundhill Cannabis ETF (WEED) rose 51.2% and Amplify Seymour Cannabis ETF (CNBS) increased 51.0% due to speculation about potential easing of federal marijuana regulations [5] - **Silver Miners**: Global X Silver Miners ETF (SIL) gained 8.4% and Amplify Junior Silver Miners ETF (SILJ) rose 7.6% driven by increased industrial demand and supply shortages [6] - **Space Economy**: Procure Space ETF (UFO) increased by 7.8%, with Rocket Lab Corp (RKLB) surging 22.8% due to heightened investor interest in the space sector [7] - **Gold Miners**: VanEck Junior Gold Miners ETF (GDXJ) rose 7.1%, and SPDR Gold Trust (GLD) gained 2.2% as the U.S. dollar weakened [9] - **Platinum**: GraniteShares Platinum Trust (PLTM) increased by 6.3%, with platinum prices surpassing $1,700 per ounce amid projected market deficits [10] - **Health Care**: Roundhill GLP-1 & Weight Loss ETF (OZEM) rose 6.3%, being the first actively-managed GLP-1 ETF, highlighting advancements in weight loss pharmaceuticals [11]

Core Insights - Cannabis stocks experienced a significant surge following the announcement that U.S. President Donald Trump is expected to sign an executive order to ease federal restrictions on marijuana [1][3]. Regulatory Changes - The executive order will reclassify marijuana from a Schedule I substance to Schedule III under the federal Controlled Substances Act, which will alter tax regulations favorably for cannabis companies [2]. - This reclassification is anticipated to facilitate more institutional investment and access to traditional banking services for the cannabis industry, which has been operating in a regulatory grey area [3]. Industry Impact - Analysts believe that the forthcoming executive order could transform the perception of cannabis companies, promoting business growth and signaling the start of a new era in public health policy [4]. - The reclassification is seen as a dismantling of outdated drug policies, aligning more closely with scientific and medical understanding [4]. Investment Opportunities - With cannabis stocks rising, investors are encouraged to explore associated ETFs, including AdvisorShares Pure US Cannabis ETF (MSOS), Roundhill Cannabis ETF (WEED), Amplify Seymour Cannabis ETF (CNBS), Amplify Alternative Harvest ETF (MJ), and AdvisorShares Pure Cannabis ETF (YOLO) [5]. - Following the news, CNBS saw a 35% increase, while the average return of the five ETFs outperformed the broader S&P 500 index by 43% year-to-date [6]. Thematic Investing - Thematic ETFs, including cannabis-focused funds, are showing signs of resurgence and are recommended as complementary growth amplifiers in investors' portfolios [7].