> I suspect many are sitting on cash, waiting for the other shoe to drop (or, you know, the market).
Well, MOST people can't afford an unexpected $500 bill, so most people aren't sitting on cash. Nevertheless, I don't agree that most of the people who can afford an unexpected $500 bill are sitting on large cash sum either either. Personally I have 2/3 in the market, and 1/3 cash (for liquid assets, I also have equity in my home but I am not counting that).
Hmmm.... One of the things you mentioned though could drop in an instant.
A return of negative is worse than 0.
I suspect many are sitting on cash, waiting for the other shoe to drop (or, you know, the market).