Big investors wary after rout
Buythedip mentality replaced by fear investors
Caution spans U.S. economy, global consumer and yen carry trade
Pension funds could be next to sell, Goldman says

LONDON, Aug 15 Reuters Big investors are bracing for this summer39;s stock market rout to run into the autumn, fearing a broader wave of selling will follow the turmoil sparked by U.S. recession concerns and the Bank of Japan wrongfooting currency speculators.

The sudden reversal of crowded equity and foreign exchange trades that generated vicious feedback loops of price drops, volatility and hedge fund selling has eased, with world stocks almost 2 higher so far this week.

But asset managers overseeing hundreds of billions of dollars of investments said they were more likely to carry on selling stocks than buy back in, with signs of weakness in the U.S. jobs market and global consumer trends lowering the bar for market aftershocks.

The buythedip mentality, where investors typically respond to selloffs by making recovery bets, has been replaced by fear.

It39;s not simply now a large financial market accident, which maybe we could describe last week as. It39;s broader than that, said Mahmood Pradhan, a former IMF deputy director and head of global macro at the research arm of Amundi, Europe39;s largest fund manager.

He expects investors, who according to Bank of America have already cut equity positions and shifted increasingly into cash, to remain cautious.

Michael Kelly,…