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 factors are driving the divergence between the dollar and other developed market currencies?

How is the trade deficit in Germany affecting the dollar's strength?