Fund managers: Stocks expensive, hold onto cash

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More than two-thirds of fund managers in a global survey see U.S. stocks as expensive, and more than half see global equities as pricey, the highest level in nearly 12 years.

The fund mangers in Bank of America Merrill Lynch's monthly survey are also bullish small cap stocks, at a time when the Russell 2000 has lagged other indexes. Just 7 percent believe large caps will outperform small caps, the lowest level since the question was asked in June 2006.