Investors’ Dwindling Cash Holdings May Be a Sign to Sell Stocks: BofA

• Cash holdings have fallen sharply as investors chase the rally in stocks, Bank of America said.
• The level of cash under management fell to 3.9% in December, triggering a “sell signal” in the stock market.
• When cash dips to that level, global stocks typically decline 2.4% in the following month.

“Super-bullish” investors have drained cash holdings to a level that typically precedes a stock market decline, Bank of America said this week.