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Fund managers are underweight cash for the first time since May 2013, the latest Bank of America fund manager survey has found, warning of overexuberance on Wall Street and potential for a pullback. 

Average cash levels in portfolios have dropped to 4%, triggering a “sell signal” according to BofA strategists. In the past, such low levels of cash holdings have paved the way for a negative 3.2% return in the S&P 500 over a one-month time horizon.

According to the survey, fund managers are buying up stocks in the hopes of global economic recovery on potential coronavirus vaccines. “Many more investors say the global economy is in an early-cycle phase (70%, highest since January 2010) as opposed to recession (12%), which as seen in 2009 & 2012 is a key recovery milestone,” BofA writes.