Almost 400 financial advisers surveyed at Bank of America’s Merrill Lynch unit said they prefer bonds and cash the most for their investment portfolios, with stocks at “three-thirds,” a Wednesday report said. Bonds as a percentage of the portfolio rose to 27% when the survey was taken in late January and early February, from 24% a year earlier. The average allocation to cash rose to 10% from 7% a year ago, while stocks fell to 57% from 62%. But advisers are not bearish on the long-term outlook for stocks, with their view of the next 12 months the most bullish in the survey’s history. Almost three-quarters (about 70%) anticipated “the bear market will end in 1H or the bear market has ended,” the report said. The survey only started in 2017, but analysts led by Bank of America equity and quantitative strategist Savita Subramanian said the bond allocation was a record high for the survey while stocks were at record highs. Almost two in five (39%) of advisers said “they are moving more into bonds,” with less than one in five (18%) moving more into stocks, the report said. With excess cash generated in their portfolios, 26% of advisors plan to buy stocks, down from 42% last year. Meanwhile, 29% are going to put their money into bonds and 30% “prefer to keep cash.” Participating advisors — who had an average of 17 years of experience in the industry — preferred value stocks over growth stocks, 78% to 12%, (by the widest margin). They are also more likely to place clients in small caps (46% bullish) than large caps (39%) or midcaps (36%). The biggest risks for the stock market in 2023 are recession (18%), central bank policy errors (17%) and geopolitics (15%), the adviser said. A year ago, the No. 1 concern was inflation. By stock sector, the advisor prefers health care, energy and financials, and is least strong on consumer discretionary, real estate and technology. Investors may not want to go against the top three industry groups this year. Bank of America said the top three favorite sectors have outperformed the bottom three by an average of 17 percentage points each year since the survey began. – CNBC’s Michael Bloom contributed to this story.