The End of the U.S. Dollar’s Bull Run?

In this episode of "Thoughts on the Market," Paul Walsh, along with Marina Zavolock and James Lord, discusses the implications of the weakening U.S. dollar on the European stock market. James Lord outlines the reasons for a structurally bearish outlook on the dollar, citing factors like slowing U.S. growth and trade tariffs. Marina Zavolock explains how this dollar weakness impacts European companies, noting that while some sectors like utilities and real estate benefit from euro strength, more than half of the European index faces negative exposure. The discussion also covers hedging strategies, with insights on how companies can adjust their tactics and the effectiveness of advanced hedging programs in managing currency risks. The podcast emphasizes the importance of considering dollar terms when evaluating European earnings growth, given the significant impact of translation.