"Bill Gross Predicts Q4 US Recession: 'Higher for Longer' No Longer Holds"
Bill Gross, the retired bond king, predicts a US recession in the fourth quarter, citing the recent rise in auto delinquencies and regional bank troubles as indicators of a significant economic slowdown. He suggests investing in equity arbitrage trades on Capri Holdings, Seagen, and VM Ware, and considers buying regional banks on falling yields. Gross also advises investing in the curve, specifically steepeners via buying 2-year notes and selling 5s or 10s, and betting on SOFR futures as a more dovish Fed is expected.