The New York Inventory Change (NYSE) stands in decrease Manhattan on Could 18, 2020 in New York Metropolis. Markets surged right now as promising particulars of a possible COVID-19 vaccine had been launched and extra European international locations step by step re-opened after months of lockdown.Spencer Platt | Getty ImagesThere’s an excellent likelihood that shares construct on their face-ripping rally off the lows given all of the cash sitting on the sidelines, in accordance with Bank of America.Savita Subramanian, the bank’s head of U.S. fairness and quantitative technique, stated fairness allocation amongst BofA purchasers has dropped by three proportion factors to 57.1% whereas cash allocations have risen to almost 14%. Present cash ranges are above a historic common courting again to 2005.The rise in cash holdings comes even after shares surged from the lows reached late March. However given the excessive valuations in bonds relative to shares, Subramanian thinks $1 trillion in cash might circulate into the stock market.”The acute attractiveness of shares over bonds, notably as charges have plummeted again to close zero, will be the catalyst for the rotation into shares, driving the market increased,” Subramanian stated in a word to purchasers.Subramanian identified shares haven’t been this enticing relative to bonds for the reason that 1950s, noting the S&P 500’s dividend yield is roughly thrice that of the 10-year U.S. Treasury word. The S&P 500 at present yields 1.94%, in accordance with FactSet, whereas the 10-year yield sits at 0.66%.That enticing relative valuation is at present in place regardless of the S&P 500 rallying greater than 35% since March 23. These positive aspects had been sparked by expectations of the economic system reopening, huge stimulus efforts undertaken by the Federal Reserve and U.S. lawmakers, together with obvious progress on a possible coronavirus vaccine.”Because the economic system enters what our economists forecast because the worst recession within the publish struggle period, the market is telling us to not fear. And it’s harmful to disregard the market,” Subramanian stated.—CNBC’s Michael Bloom contributed to this report.Subscribe to CNBC PRO for unique insights and evaluation, and dwell enterprise day programming from world wide.