Reuters quotes Axel Merk as investors pare risks:

" 'Most people are just headless and panicking and don't know what they want to do,' said Axel Merk, portfolio manager, at Merk Hard Currency Fund in Palo Alto, California .

Merk noted that the current carry unwinding is far from over and that the market will experience more volatility as investors pare back some risk in their leveraged portfolios."