BofA Clients Keep Tight Grip on Cash Amid Ebullient Stock Rally
- Cash holdings edge up to 4.9% in latest fund manager survey
- Investors anticipating ‘bad news on virus, macro, election’
The Bank of America Tower stands in New York, U.S., on Tuesday, June 9, 2020
Photographer: Nina Westervelt/BloombergThis article is for subscribers only.
After slashing cash piles by the most in a decade last month, fund managers with $570 billion are largely hanging on to their dry powder amid one of the most epic stock rallies in history.
Investors surveyed by Bank of America Corp. boosted average cash holdings to 4.9% this month from 4.7% in June, according to a week-long poll ended July 9. With global equity benchmarks up about 40% from this year’s lows, most managers see stocks as overvalued and prefer navigating the volatility with bonds and commodities, according to BofA.