The firm notes that:
"Q1 results were strong, and while guidance was largely maintained, the outlook has become more uncertain. Some of this appears to be already in the price, as the market has moved ahead of earnings and therefore implies lower revisions ahead. But until expectations are reset lower, if recession worries don't ease, we think that equity upside will be capped, at best, and that investors will continue to sell rallies."
That's a fair argument considering that inflation and cost pressures are here to stay for longer. Adding to that will be the tightness in consumer spending, not to mention the rougher global growth outlook (recession fears) for the time being.
