PIMCO's Gross Predicts U.S. Recession in 2022 Despite Current Growth, Advises Regional Bank and Yield Curve Bets

Bill Gross, co-founder of PIMCO, believes a U.S. recession will begin by end of 2022 due to rising auto loan delinquencies and regional bank struggles.

The prediction contrasts with current data showing solid U.S. economic growth, including a 5.4% GDP rate in Q3 per the Atlanta Fed.

Gross recommends investing in beaten-down regional bank stocks and merger arbitrage plays.

He also advises betting on further Treasury yield curve steepening as growth slows.

Gross says "higher for longer" interest rates is an outdated mantra as Fed cuts loom.