There are indications that investors are becoming extremely gun-shy today when it comes to any risk in their savings and retirement and have a very high concentration in cash. The research division of State Street Corp, a large asset manager, conducted a survey and found high concentrations of cash and cash-equivalents worldwide at all asset levels. See this article in Marketwatch (from the Wall Street Journal) by Anne Tergesen for more details:

http://blogs.marketwatch.com/encore/2014/06/12/bad-move-retirement-savers-flock-to-cash/

Based on this survey, people appear to be scared of the markets (after the last 12 years, it is understandable) but safety in cash may be a false hope if inflation rears its ugly head. Better to asset allocate across all classes and keep a smaller percentage in cash. The mattress in the corner (where you hide your cash) can still catch fire!

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