Equity Valuations 'Quite Challenged': iCapital's Amoroso

The video discusses the current market conditions, focusing on the Federal Reserve's restrictive policies and their impact on equity exposure. It highlights the challenges faced by the economy, including potential recession risks and depressed valuations. Despite possible short-term market bounces, the long-term outlook remains cautious due to high interest rates and expected EPS downgrades.

What are EPS downgrades and why are they likely to occur according to the text?

What does the text suggest about the relationship between interest rates and the relative value of equities?