Bank of America survey shows cash holdings fall below key threshold triggering sell signal for stocks

According to a monthly survey by Bank of America, investors' cash positions have fallen below a critical threshold, triggering a signal to sell stocks amid high valuations in the tech sector. The average cash position held by global fund managers has dropped to 3.7%, a level that has only been seen 20 times since 2002. Bank of America strategist Michael Hartnett pointed out in the report that in the one to three months following such occurrences, the stock market has historically seen declines, while US Treasuries have performed better.