Chief strategist Irene Tunkel warned in a note Monday that she doesn't "anticipate new market highs within the next three months — there are too many negative crosscurrents for equities." "Over the next three months, U.S. equity investors face slowing economic growth, the unwinding of carry trades, skepticism about , uncertainty about the Fed easing campaign, and a run-up to the Presidential election," Tunkel added.
Earlier this year it called for a decline of 1%. Shares were down slightly in the premarket. BCA also pointed out that, even though the stock market has been clamoring for lower interest rates to boost valuations and lift consumers, equities have a history of correcting after the first rate reduction of a cycle — "even if it were to stave off recession.