Market risk looms just about everywhere in the coming week, from Japan's devastating earthquake to euro zone debt travails, Middle East turmoil and rising scepticism about US Treasuries. It would normally be enough to send investors scurrying into safe havens. There have been some moves of that sort and are bound to be more.
But enough of the risk is related to government bonds to make that option less attractive than normal. Cash, meanwhile, offers negligible returns.
So, equities have remained relatively resilient. World stocks have come off highs, but are still clinging to year-to-date gains thanks primarily to the developed markets. How long this remains the case will depend on a broad swathe of unknowns, some of which may become clearer in the week ahead.
First, Japan. The massive quake and tsunami that hit on Friday will have an economic impact and could enlarge the fiscal deficit.
The yen also rose after an initial fall on the prospects of post-quake investment repatriation.
The disaster may also put some pressure on the Bank of Japan, which said it was cutting its two-day meeting short next week to just Monday. It cannot do anything with rates per se even if it wanted to because the current target is just 0.05 percent. It has, however, promised to ensure market stability.
Japan's stock market, meanwhile, has been something of a favourite with global investors this year. The broad TOPIX index was up more than 8.5 percent for the year in mid-February before the recent pull back and Friday's quake-related sell-off.
Analysts suggested that companies based in and around the main damage area could suffer losses on Monday but that construction firms would get a boost.
Financial markets bounced back fairly quickly after the 1995 quake that devastated Kobe and caused $100 billion in damage.
European leaders agreed on Saturday to strengthen the euro zone bailout fund, make its loans cheaper and lower the interest rate on funds extended to Greece. EU finance ministers meet in the coming week to work on a comprehensive package of anti-crisis measures, and it is all scheduled to be agreed at a full EU summit on March 24/25.
But there remains something of a disconnect between the slow, measured pace adopted by the EU and markets' desire to get the problem under control.
Yield spreads - the gaps in borrowing costs - between Germany and debt-ridden outliers such as Greece and Portugal are blowing out again and the cost of insuring that debt is rising. Investors are clearly expecting that Portugal will soon join Greece and Ireland in applying for a bailout. Markets were unimpressed, for example, with new spending cuts announced by Portugal on Friday to try to restore confidence. Ten-year bond yields held at euro lifetime highs.
The other major "event" of the week ahead will be the US Federal Reserve's rate meeting on Tuesday.