The stock market fell significantly after President Trump announced widespread tariffs on April 2. The so-called “Liberation Day” announcement included tariff rates higher than hoped, forcing investors to reset expectations for the U.S. economy and corporate earnings.

Given recent data, a potential slowdown in the U.S. economy may already be underway, and the risk that tariffs could push us into an outright recession casts a long shadow over stocks, given that stock prices’ valuation is largely determined by future expectations for revenue and profit growth.

Historically, steep sell-offs like we’re witnessing in the S&P 500 and Nasdaq Composite, which were down 17% and 22% early on April 4, respectively, from their January highs, create opportunities for risk-tolerant investors to ‘buy the dip.’

The potential that investors go bargain hunting has caught the attention of veteran Wall Street bond manager Bill Gross. Gross has been navigating markets since 1971, and he co-founded Pacific Investment Management Co, or PIMCO, a massive firm with $2 trillion under management. He formerly managed over $270 billion via PIMCO’s Total Return Fund, earning him the “Bond King” nickname before moving to Janus Henderson Investors from 2014 to 2019.

Gross has seen a lot over his 50-year career, and he offered a blunt message about the stock market this week.