Agree that those with many are probably thinking defence first, and being selective about what they are betting on. But the article contradicts itself a little.

One one hand, the US is getting frothy and investors are probably trimming their positions. On the other hand, investors are bringing their money back to North America - probably the US?  If that is true, I expect that some of it will find its way into US exchanges and not all going into private equity and real estate.  And hedge funds? Those in the industry have been witnessing a contraction in hedge funds and they are predicted to continue their decline to the the very poor value and performance over the past few years.

Truth is, it has always been about balance.  Global/regional/local and asset class.  You can't predict what is next, so best to shift your position somewhat, but stay true to a balance based on geogaphy and asset class.