Bank of America says sell stocks on the vaccine as overconfident investors dump cash for equities

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People walk past the New York Stock Exchange (NYSE) and 'Fearless Girl' statue at Wall Street on December 9, 2020 in New York City.
Angela Weiss | AFP | Getty Images

Investors have been cutting cash levels to buy stocks, the latest sign that the market may be due for a pullback at least in the near term.

Cash balances fell to 4% of portfolios in the December Bank of America Fund Manager Survey, the firm reported Tuesday.

As a result, professional investors are underweight cash for the first time since May 2013. That has triggered a sell signal under the metrics Bank of America uses to measure sentiment among portfolio managers.

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