Bank of America data shows the market could stall towards the end of the year, but investors remain confident. The proportion of cash in portfolios fell to a record low of 3.3% in December, according to the bank’s Global Fund Manager Survey. This is down from 3.7%. Michael Hartnett, Bank of America’s chief investment strategist, called the move a “cash crash” in a note to clients Tuesday. This rush into stocks comes as market optimism grows. Allocations to stocks and commodities have reached their highest levels in nearly four years, according to the survey. Net overweight in equity allocation rose to 42%, the highest level since December 2024. Technology stocks have struggled recently after rallying strongly this year on concerns about artificial intelligence infrastructure spending. The NASDAQ Composite Index has fallen 1.4% since the beginning of December, and has been on a downward trend for two consecutive months. These declines are weighing on the broader market, with the benchmark S&P 500 index on the brink of ending its seven-month winning streak. However, the survey found that managers were buying on the spur of the moment, with exposure to the sector rising to its highest level since July 2024.
