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BofA Says Market Is So Bullish It’s Time to Sell on Vaccine News

  • Allocation to stocks jumps to 2018 high, cash holdings plunge
  • Economic growth bets surge to 20-year high, driving rotation

Photographer: Thibault Savary/AFP/Getty Images

Fund managers overseeing $526 billion are the most bullish they’ve been this year following the U.S. election outcome and progress on a vaccine, prompting a call from Bank of America Corp. strategists that it’s time to start selling risk assets.

The monthly survey, conducted Nov. 6 through Nov. 12 saw investor optimism about stocks skyrocket, with allocation jumping to the highest level since January 2018. Cash holdings plunged to the lowest level since April 2015, while economic growth expectations surged to a 20-year high. Investors snapped up more volatile assets, such as small-caps, value, banks and emerging-market stocks, while shifting away from bonds and staples.