They are forecasting “roughly flat” earnings growth in most regions this year.
The U.S. central bank is expected to hike interest rates on Wednesday.
The banks strategists are particularly negative on technology shares.
A deep contraction in margins will mostly outweigh modest growth in first-quarter sales, the firm's strategists said.
The firm's strategists also said investors shouldn't expect the Fed to soon end monetary tightening.
Global cash funds had inflows of nearly $143 billion, the largest since March 2020 in the week through Wednesday.
The most likely source of a credit event is U.S. shadow banking.
Europe has been a popular theme among global fund managers this year.
Market participants have been finding new and more sophisticated ways recently to avoid scrutiny by regulators.
It's likely to be a painful and “vicious” start of an end to the bear market in U.S. stocks, the firm's chief strategist said.