Fund managers' allocation to stocks is at an 18-month low, and many believe the market has peaked or will peak this year.
The allocation to global technology shares also fell sharply — to a five-year low, according to the latest monthly Bank of America Merrill Lynch Fund Manager Survey.
The allocation to equities dropped to a low of net 29 percent, down from 41 percent in March. BofA said the current allocation is back at its long-term average.
Forty percent of the fund managers surveyed believe equities will peak in the second half of this year, but 18 percent believe they've already peaked. Another 39 percent see the peak next year or later.
The allocation to technology stocks fell to net 20 percent overweight, the lowest since February 2013. Yet, FANG and big-cap tech stocks remained the most crowded trade for a third month, according to 33 percent of the participants.
Investors also see earnings peaking, with just 20 percent expecting profits to improve over the next year, an 18-month low. In addition, 64 percent of investors say they would bail on the tech stocks and reduce them to underweight if antitrust, tax and privacy regulations pick up.
A total of 216 fund managers participated in the monthly global survey.