Strategists Are Growing Increasingly Negative About U.S. Markets and Growth

We're a week into the new year, and analysts are already ratcheting down their expectations for U.S. stocks, while various economic models are also moving downwards.

Investment banks, including RBC Capital Markets and Citigroup, have been growing more cautious on U.S. stocks and telling clients to look for better opportunities elsewhere. "Fading [earnings per share] momentum and rising Fed funds mean that, after six consecutive years of outperformance, we cut the U.S. to 'underweight,'" Citi said this week.