Investor Survey Signals Possible Stock Market Rally Ahead

Cash allocations above 5% among investors signals a stock market buy signal, according to Bank of America survey.

The buy signal has historically preceded solid stock market gains over the next 2-6 months.

Average cash allocation jumped to 5.3% in October from 4.9% in September.

64% of investors expect a soft economic landing or no slowdown over next 12 months.

Consensus views include lower rates/yields, China growth rebound, lower inflation ahead.