Stocks Will Fall 3%-5% If Fed Cuts by 50 Basis Points, Prosper Trading's Bauer Says

What was the initial expectation for the Federal Reserve's rate cuts before recent changes?

• Only one rate cut was expected.

• Three rate cuts and possibly a 50 basis point cut.

• No rate cuts were expected.

• A 100 basis point cut was anticipated.

What is the expected market reaction if a 50 basis point cut occurs?

• The market will likely rally.

• The market will remain stable.

• A major sell-off is expected.

• The market will experience minor fluctuations.

How are rising rates expected to affect the stock market?

• Stocks will remain unaffected.

• There will be a little bit of wobbliness for stocks.

• Stocks will experience a significant decline.

• Stocks will likely experience a major rally.

Why is the banking sector expected to perform well if yields climb?

• Banks are negatively impacted by rising yields.

• Banks are expected to underperform in volatile markets.

• Banks have no correlation with yield changes.

• Banks benefit from higher trading revenues due to added volatility.

What is the trading strategy mentioned for JP Morgan?

• Buying next week's 14117 call spread.

• Shorting JP Morgan stocks.

• Investing in long-term bonds.

• Selling all JP Morgan stocks.