BofA Says Stocks Flash Sell Signal After Cash Holdings Tumble
- Cash as percentage of assets under management falls to 3.9%
- Previous drops in cash allocation preceded equity losses
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Fund managers have been reducing cash holdings to a record low and pouring money into US stocks, triggering a metric that Bank of America Corp. says could be a signal to sell global equities.
Cash as a percentage of total assets under management dropped to 3.9% in December, a move that in the past has been followed by losses on the MSCI All-Country World Index, strategist Michael Hartnett said. Allocation to US equities surged to a record high of net 36% overweight, according to the BofA survey.