On average, these funds haven't lost much, but they largely missed out on the first half's big runup in large-caps. The pain has been much more intense for the contrarian, or truly bearish, funds. And yet, although the strategies at these funds have failed, their managers can't be faulted for looking for protection.
Stocks also look expensive by a myriad of other measures.
And investors are worried about profits, Asia, inflation and on and on and on. And when a bear market does hit, there will be real long-term suffering. And those figures understate some of the carnage. Because the bull has lingered on Wall Street for a decade and a half, many of today's investors haven't experienced anything approaching the terror of a true bear market. Then again, maybe not.