{"id":2078791,"date":"2023-10-25T09:09:04","date_gmt":"2023-10-25T13:09:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-king-predicts-recession-in-united-states-by-year-end-2023\/"},"modified":"2023-10-25T09:13:13","modified_gmt":"2023-10-25T13:13:13","slug":"bond-king-predicts-recession-in-united-states-by-year-end-2023","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-king-predicts-recession-in-united-states-by-year-end-2023\/","title":{"rendered":"&#8216;Bond King&#8217; forecasts US recession by end of 2023."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbond-king-predicts-recession-in-united-states-by-year-end-2023%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2078791&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>The U.S. economy is heading towards a recession in the fourth\u2064 quarter, fueled by troubles in the banking industry, according to billionaire investor Bill Gross.<\/p>\n<p>Gross, also known as the &#8220;Bond King&#8221; and co-founder of Pacific Investment \u2063Management Co. (PIMCO), made this prediction on Oct. 23, stating that the recent rise in auto delinquencies and regional bank failures indicate \u200ba significant slowdown in the U.S. economy.<\/p>\n<p>The banking system in the \u2064U.S. has\u2063 been facing a crisis since the failure of Silicon Valley \u2064Bank (SVB) in March. While\u200c the overall liquidity of the\u200b banking system has increased, there are more\u2063 banks with smaller liquidity buffers, putting \u200bthem at a higher risk of failure.<\/p>\n<blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/the-long-view-wars-inflation-recession-and-domestic-sleeper-cells-5515430?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>The Long View: Wars, Inflation, Recession, and Domestic Sleeper Cells<\/h3>\n<p>        <\/a><\/p>\n<p class=\"text-comp-caption\">10\/24\/2023<\/p>\n<\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/opinion\/the-recession-is-now-5515155?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>The Recession Is Now<\/h3>\n<p>        <\/a><\/p>\n<p class=\"text-comp-caption\">10\/23\/2023<\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>Furthermore, \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenomics-americans-falling-behind-on-auto-payments-at-record-rate-mass-repossessions-looming\/\" title=\"Bidenomics: Record Auto Payment Delinquencies, Mass Repossessions Imminent\">car loan defaults<\/a> in the United States have reached a record high, with subprime \u200bauto borrowers being 60 days past due at a rate unseen in Fitch \u2063Rating&#8217;s history.<\/p>\n<p>PIMCO\u2063 had previously predicted a recession for\u200c the U.S. economy back\u2062 in February, and other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-king-predicts-recession-in-united-states-by-year-end-2023\/\" title=\"'Bond King' forecasts US recession by end of 2023.\">investment firms share similar views<\/a>.<\/p>\n<p>Charles Schwab, an investment firm, stated that while the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amazon-owned-self-driving-firm-zoox-seeks-to-test-robotaxi-in-california\/\" title=\"Amazon-owned self driving firm Zoox seeks to test robotaxi in California\">current economic slowdown<\/a>\u200b may be a result of post-pandemic adjustments, the risks of a recession are still present.\u2064 Factors such as the increase in the value of the U.S. dollar, oil prices, and Treasury bond yields\u2062 have put downward pressure on the economy and\u200c market.<\/p>\n<p>Mr. Gross believes that \u200dthe best investments at the moment are in equity arbitrages, \u200bspecifically mentioning Capri Holdings, Seagen \u200bInc., \u2062and possibly VMware. He\u2062 also suggests investing in the\u2064 curve for bonds.<\/p>\n<div class=\"my-5\">\n<p>Mr. Gross is\u2062 currently buying secured overnight financing rate (SOFR) futures, which are used to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-2024-candidate-ramaswamy-says-feds-should-let-silicon-valley-bank-fully-fail\/\" title=\"GOP 2024 Candidate Ramaswamy Says Feds Should Let Silicon Valley Bank \u2018Fully Fail\u2019\">hedge interest rate risk<\/a> in the short \u2062term.<\/p>\n<h2>Recession Indications<\/h2>\n<p>The Federal Reserve has been raising \u200drates since March last year \u2064to control inflation. Some officials at the central bank are now signaling a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-puts-44-billion-twitter-buyout-on-hold\/\" title=\"Elon Musk Puts  Billion Twitter Buyout on Hold\">potential economic slowdown<\/a>.<\/p>\n<\/p><\/div>\n<p>Fed\u2062 Governor Christopher Waller expressed \u2063concerns about the current \u200beconomic conditions, stating that growth may\u200d moderate or undermine progress towards inflation objectives.<\/p>\n<p>According to a Bankrate survey, top economists \u2064rate \u2063the odds of a recession between now and September 2024 at 46 percent, the lowest since the first quarter of 2022.<\/p>\n<p>While some economists believe in a soft landing for the economy, others, like\u200d Mark Hamrick from Bankrate, see a stronger chance of a recession hitting the United States.<\/p>\n<p>Last week, the U.S. \u206210-year Treasury note briefly breached the \u200d5 percent rate, raising concerns about a recession. The Conference Board Leading Economic Index (LEI) for the United States has also been declining for \u2062a year and \u2064a half, indicating \u200cpotential economic weakness ahead.<\/p>\n<p>The Conference Board forecasts a shallow recession in the first half of 2024.<\/p>\n<\/div>\n<p> <\/p>\n<h2> What are the primary catalysts for the\u200b impending downturn in the U.S. \u2062economy, as predicted by billionaire investor Bill\u200c Gross?<\/h2>\n<p><span>  Ession in the U.S. economy earlier this year, based on concerns over the\u200c escalating trade \u200dwar\u2063 between the U.S. and China. Now, Gross believes that the troubles in the banking industry will be the primary\u200c catalyst for this \u200bimpending downturn.<\/p>\n<p>Since the failure of SVB, the banking system in the U.S. has been facing increased\u2063 challenges. While the overall liquidity of\u200c the \u200cbanking system has improved, there are more banks with smaller liquidity buffers, making them more susceptible to failure. This has raised concerns \u200cabout the stability of the banking industry\u2064 and\u200b its ability to weather potential economic shocks.<\/p>\n<p>In addition \u2064to the \u200bbanking industry, the surge in auto delinquencies is also a significant cause for concern. The number of car loan defaults in the U.S. has reached a\u2063 record high, especially among subprime auto\u2062 borrowers. Fitch Ratings\u2063 has reported \u2062that 60-day \u200ddelinquencies among\u2064 this group are at a level unprecedented in\u2062 their history. This indicates that many consumers are struggling \u2063to repay their loans, which could have broader implications\u2064 for \u2062the overall economy.<\/p>\n<p>Gross&#8217;s prediction aligns with recent events in \u200cthe U.S. economy. The recent failures of regional banks have demonstrated \u200bvulnerabilities in \u200cthe banking system, while the rise in auto delinquencies points to a potential\u2064 slowdown in consumer \u2064spending. These factors, combined with the ongoing trade war and other global uncertainties,\u200b create a recipe for a recession.<\/p>\n<p>It is important\u2064 to note that predictions about the economy are inherently uncertain. Many factors can influence economic trends, and unforeseen \u200bevents can significantly impact the course of the economy. However, the concerns raised by Gross and others should not be dismissed. It is crucial for policymakers and financial institutions to closely monitor the banking industry, address \u200cvulnerabilities, and implement measures to mitigate the potential risks.<\/p>\n<p>In conclusion, billionaire investor Bill Gross \u200dpredicts that the U.S. economy is heading towards a recession in the fourth quarter. Troubles in the banking industry, including the failure of SVB\u200d and the increased vulnerabilities of\u2063 smaller banks, along with the rising number of auto delinquencies, point to a significant slowdown\u2063 in the economy. While predictions about \u200dthe economy are uncertain, these concerns should \u2063be taken seriously and appropriate measures should be\u2063 taken to minimize the potential \u200drisks.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investment Management, predicts a recession in the US economy by Q4 due to banking industry issues. High auto delinquencies and regional bank struggles suggest a significant slowdown. Bill Gross, the renowned &#8220;Bond King,&#8221; warns of an impending economic downturn.<\/p>\n","protected":false},"author":186,"featured_media":2078792,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2078791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2078791"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2078792"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2078791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2078791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2078791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}