According to the survey, the biggest tail risk for the market is a second wave of the pandemic. A total of 223 panelists managing $650 billion in assets were surveyed by BofA between May 7 and May 14.
Fund managers say a vaccine breakthrough could be catalyst for the V-shaped recovery.
Nearly three-fourth of the fund managers believe companies should reduce debt, 15 per cent said they should increase capex and 7 per cent said companies return cash to shareholders
Fund managers are favouring fixed-income more with bond allocation rising to highest level since July 2009, the survey revealed.
The most-crowded trade was US tech and growth stocks. Meanwhile, fund managers were short on emerging market for first time since September 2018 and were record long on the healthcare sector.