Gross Predicts Recession by Year-End, Recommends Buying Futures as Inflation Holds Steady and Fed Weighs More Hikes
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Bill Gross predicted the US will be in a recession by Q4 2022. He plans to buy SOFR futures.
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Gross said bank struggles and high auto loan delinquencies indicate the economy is slowing. He said equity arbitrages are the best investments now.
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Inflation held steady in September as the Fed considers more rate hikes. Prices rose 0.4% monthly and 3.7% annually.
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The Fed raised rates to a 22-year high in July after a brief pause in June. Rates are now 5.25-5.5%.
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Fed Chair Powell said the path to lower inflation will be bumpy and take time. A few good months of data are just the start.