'V is for Vaccine', BofA says

Strategists at Bank of America still saw scope for one more leg up in equities due to investors' still "very bearish" positioning.

According to the results of their April survey of fund managers, these were now sitting on the most cash, as a proportion of their assets, since the 2001 terrorist attack against the twin towers in New York city.

They were also holding the least amount of shares since the March 2009 lows on the S&P 500 during the Great Financial Crisis.

Nonetheless, their recommendation to clients was to take profits when the S&P 500's rally reached the 2,850 to 3,000 point range.

What might trigger a 'bull market'? "V is for Vaccine" they answered, explaining that it would end fears or a long recession, both in terms of gross domestic product as well as corporate earnings.

On the flip-side, the biggest risk was a surge in the Greenback's value on the back of a so-called 'credit event' with the energy sector, the euro area and emerging markets the most likely foci.

Worth noting, 79% of corporations now wanted to improve their balance sheets, BofA said, the most in 20 years, while only 5% were pushing for share buybacks.

Furthermore, although investors believed that forecast reductions for global GDP were now largely past, earnings per share estimates were only starting to come down.

As well, Only 15% of investors were expecting a V-shaped economic recovery and a further 22% a W-shaped one, with the remainder anticipating a U.