Equities Don’t Need a Recession to Trade Lower, BNP's Boutle Says

The video discusses the current state of equity markets, emphasizing the need for defensive portfolio positioning due to deteriorating fundamentals and economic data. Despite improved sentiment around trade and a dovish Fed, actual fundamentals are weakening. Hedge funds have not participated in recent rallies, indicating a 'wall of worry.' The risk of a recession is present, but not necessary for market downturns. Earnings growth is slowing, with significant contributions from buybacks, and the labor market remains strong, potentially compressing margins.

What are the implications of deteriorating fundamentals on equity markets as discussed in the text?

What concerns are raised regarding earnings growth and its impact on the equity market?