Markets Haven't Priced In Lower Earnings: Pimco's Browne

The video discusses the impact of a strong dollar on S&P revenues, noting a potential 3% hit to earnings due to currency fluctuations. It highlights market expectations for strong earnings and margins, which may be difficult to achieve. The video also explores divergences between the dollar and other developed market currencies, driven by central bank policies and trade deficits, particularly in Germany. The impact of oil prices and gas on European economies is also examined.

What percentage of S&P revenues is affected by the strengthened dollar?

• 10%

• 70%

• 30%

• 50%

What is the expected year-over-year earnings growth for the second half of the year?

• 20%

• 15%

• 5%

• 10%

What is one of the main reasons for the divergence between the dollar and other developed market currencies?

• Central bank policies

• Trade surplus in Germany

• Decrease in oil prices

• Increase in US exports

Which country is experiencing a trade deficit that affects currency divergence?

• France

• Germany

• Italy

• Spain

Which region is more significantly impacted by oil and gas prices compared to the US?

• Africa

• Europe

• Asia

• South America