Pimco's Browne Sees More Downside to Stocks

The video discusses the divergence between equity market signals and economists' predictions regarding a potential recession. PIMCO's models suggest a less than 30% chance of recession, while many economists see it as the base case. The discussion highlights the expectation of a mild recession due to strong household and corporate balance sheets, contrasting with past severe recessions. Despite this, equity earnings are expected to fall, with current market pricing potentially overstated.

What factors contribute to the expectation of a mild recession according to the speaker?

What is the current pricing of equity market earnings year on year, and why does the speaker believe it is misstated?