There’s a good chance that stocks build on their face-ripping rally off the lows given all the cash sitting on the sidelines, according to Bank of America.
Savita Subramanian, the bank’s head of U.S. equity and quantitative strategy, said equity allocation among BofA clients has dropped by 3 percentage points to 57.1% while cash allocations have risen to nearly 14%. Current cash levels are above a historical average dating back to 2005.