Cash levels jump to highest since 9/11 terrorist attacks: BoFA survey

Stocks may be recovering from their March lows, but investor pessimism over the pandemic’s economic damage is at “extreme” levels with cash positions the highest since the 9/11 terrorist attacks, according to a Bank of America survey. 

Fund managers have shunned risk, with equity allocations the lowest since the 2009 financial crisis, the poll conducted between April 1 and April 7 shows. Cash levels surged to 5.9 per cent from 5.1 per cent in March, signalling peak pessimism to BofA strategists.

Global equities have rallied more than 20 per cent from their March lows on optimism over fiscal and monetary stimulus in