‘Bond King’ Bill Gross sees a recession in the 4th quarter and reveals what he’s doing with his money

• A recession will hit in the fourth quarter, Bill Gross said in a Monday tweet.
• Invest in the yield curve, SOFR futures, and equity arbitrage, he advised investors.
• Bill Ackman also closed bets made against Treasurys, amid growing economic risks.

The US will drop into a recession this quarter, as the economy is flashing signs it’s cooling down, billionaire investor Bill Gross tweeted on Monday.

PIMCO’s former chief investment officer based his forecast on regional bank challenges and a jump in auto loan delinquencies — in September, a record 6.11% of subprime borrowers have fallen behind on car payments in over 60 days, while vehicle repossessions have also jumped, Fitch Ratings reported.