Bank of America survey: Investors' cash positions falling below key thresholds triggering stock market sell signals. Potential AI bubble poses the biggest tail risk.

According to the Wisdom Financial APP, a monthly survey by Bank of America shows that investors' cash positions have fallen below a key threshold, triggering a so-called stock market sell signal as concerns about overvaluation of technology stocks heat up in the market. Bank of America strategist Michael Hartnett stated in a report that the average cash holding ratio of global fund managers has dropped to 3.7%, a situation that has only occurred 20 times since 2002. Historical data shows that after each occurrence of this situation, the stock market has declined in the following one to three months, while government bonds have performed well.