Traders With $515 Billion Boycott Stocks for Cash Despite Rally
- Global stock allocation in February is lowest since 2016: BofA
- Net cash investment is highest overweight since 2009 crisis
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Investors with $515 billion surveyed by Bank of America Merrill Lynch aren’t convinced by the new-year equity rally and prefer cash to stocks.
Global equity allocations in February fell to the lowest level since September 2016, according to BofA, even as the MSCI All Country World Index is up almost 8 percent in 2019. That indicates a deep lack of conviction in the sustainability of the rebound among traders. The share of investors who believe the S&P 500 Index has peaked at 2,931 jumped to 34 percent this month from just 11 percent in September.