Flight out of stocks slowsDecember 7, 2012: 10:05 AM ET
Investors continued to pull money out of U.S. stock funds last week, but the pace of outflows slowed considerably.
U.S. stock mutual funds lost just $481 million in the week ended Nov. 28, according to the Investment Company Institute, far less than the previous week's $7.5 billion withdrawal.
In total, investors have yanked more than $14 billion during the three weeks following President Obama's re-election, as they turn their attention to the debate over how to solve the fiscal cliff. The total outflow from stock funds now stands north of $127 billion for 2012.
Investors are hopeful that lawmakers in Washington will come to an agreement that avoids the year-end tax hikes and spending cuts, but caution will prevail until an actual deal is struck. The so-called fiscal cliff could harm the economy at a time when the outlook for growth is already in question.
Meanwhile, investors showed modest demand for bonds, adding $4.5 billion to bond mutual funds during the latest week.
Hybrid funds, which invest in both stocks and bonds, came back in favor with investors, gaining $143 million. That was after two straight weeks of losing more than $1 billion.