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

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.