However, investors also are keeping cash on hand as a buffer against what could go wrong. Investors believe the three biggest risks to be a trade war, U.S. policy error and China problems including a currency devaluation or a real estate bubble.
Donald Trump takes office as the 45th president Friday amid expectations that his promises of lower taxes, less regulation and higher spending will spur the economy, which has seen steady though lackluster growth since the financial crisis and accompanying recession.
"Ahead of the U.S. presidential inauguration, investors are positioned for stronger growth and inflation, but are not willing to turn fully bullish with China-related risks on the horizon," Michael Hartnett, chief investment strategist at BofAML, said in a statement.
Cash is at 5.1 percent of investor portfolios, up from 4.8 percent in December and above the long-term average of 4.5 percent. BofAML believes cash allocations serve as contrarian indicators, with balances above 4.5 percent indicating a "buy" for stocks. Equity allocation was at a 13-month high in the survey.
Also notable: Investors believe the most crowded trade is the U.S. dollar "by a country mile," BofAML said, with the percentage of respondents who think the greenback is overvalued the highest since November 2006.
The trends point to investors of a positive mindset but reluctant to press the accelerator.