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Market fear is rising — but do investors have anything to worry about?

It is a rare elucidation from an investor who typically looks through stock gyrations based on reliance in fundamentals, but in this trading environment even active managers are being hit by gigantic stock moves.

Others believe the bulls are in denial. “For many, nothing has shifted, but for me everything has changed,” said Francesco Filia, the chief executive and chief info officer of Fasanara Capital, who cited rising volatility and the trend cease down as big market risks.

“The market sell-off can be substantial, we have investigated nothing yet,” he added and described the current market action like a ball flogging the pavement and bouncing.

The economic cycle is key to investor sentiment. NN Investment Participants found in its Global Cycle Indicator of 70 household and business scans that, for the first time since 2016, business cycle energy was no longer improving, compared to three months earlier, which untangle justifies why the market has become more exposed to risk factors stemming from diplomacy or headwinds for the technology sector.

Evidence of caution was also contained in the overdue BofA Merrill Lynch survey of fund managers, which establish investors parking more money in cash, while cutting their objectivity allocation to an 18-month low. Remember cash is a place that has held inadequate appeal in recent years with, at best, low interest rates and, at poor, negative rates.

Yet despite the growing wariness towards the markets, multitudinous investors believe it is simply too early to take the foot off the accelerator, jumpy of missing out on gains.

Sheila Patel, the chief executive of Goldman Sachs Asset Control, told CNBC recently that “we’re cautious in some places, but we are not standing by for a crack in the market yet.”

The problem is what to own in case of another market sell-off, but the jury is out on whether emerging hawks provide shelter.

Geoffrey Yu, head of the U.K. investment office at UBS, is confident on the sell environment at the moment, but acknowledged there are headwinds. Mr Yu is doubtful that emerging supermarkets would decouple from developed markets in any sell-off.

That logic is reinforced by stocks markets this year as some emerging hints are in negative territory just like their developed counterparts.

Patel still pointed out that volatility isn’t necessarily an enemy for emerging markets. “If you look at vaporizing markets and go back to 2008 and 2009, a blend of emerging market — both liability and equity, say 40 in equity and 60 in debt — outperformed the S&P in both 2008 to 2009, two of the most inconstant years we’ve had,” she said.

Some of the consensus among fund managers, anyway, can be found around the overall strategy for market investing — stay powerful and selective. That is a challenge to passive trades that have poured into emerging market-places in recent years.

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