With earnings season kicking off this week, some investors are worried that it could be the worst quarter since 2009.
"We're entering the second quarter much like we entered the first quarter, expecting negative growth on both the top and bottom line," Christine Short, senior vice president at Estimize, said Tuesday.
She told CNBC's "Closing Bell" the firm is expecting earnings per share to fall about 3.5 percent and revenues to drop about 2.9 percent.
Like the first quarter, companies have been citing the impact of the stronger dollar and energy prices so far in their press releases, Short noted.
However, "now we're looking at this new crisis which is the bursting of the equity bubble in China and how that's going to impact these companies."
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She expects that could affect the end of the quarter but because a lot of the companies have already ended their fiscal quarter, she said it will probably be dragged out into the third quarter.
About 8 percent of revenues come from Asia-Pacific, Short said, with big names like Nike, McDonald's, GE and Exxon Mobil relying on a chunk of revenues coming from China.
Despite the negative outlook for the second quarter, many investors still say they prefer the U.S. stock market because of earnings momentum. That's because they tend to look toward the back half of the year, said Short.
"A lot of the earnings momentum was baked into the second half of the year but ... now we'll see how estimates are revised possibly downward based on Europe [and] China," she said.