The Buzz

All markets and investing news all the time

Investors still rushing out of stocks and into bonds

November 15, 2012: 11:19 AM ET

Investors pulled $2.1 billion from U.S. stock mutual funds during the latest week, bringing the year's total outflow to almost $110 billion.

Investors continued to buy up bonds and unload stocks last week, as they reacted to President Obama's re-election and geared up for a heated debate over how to solve the fiscal cliff.

While bond funds raked in $7.5 billion, U.S. stock mutual funds lost another $2.1 billion during the week ended Nov. 7,  according to the Investment Company Institute.

The total inflow into bonds this year is now more than $275 billion, while the outflow from stock funds approaches $110 billion.

Related: CNNMoney Fear & Greed Index close to Extreme Fear territory

Though the uncertainty over the election is now removed, investors are remain fearful. And as they keep a wary eye on fiscal cliff negotiations, the dynamic of favoring bonds over stocks has only intensified. Since Obama's reelection, the S&P 500 has declined more than 5%, while Treasuries have rallied, pushing the 10-year yield from just under 1.8% to about 1.6%. (Bond prices and yields move in opposite directions.)

Related: Buffett not worried about fiscal cliff

Meanwhile, the ICI data also show that hybrid funds, which invest in both stocks and bonds and have been extremely popular among investors this year, brought in $553 million last week.

And international stock mutual funds drew in $300 million during the latest week, after losing more than $11 billion during 15 consecutive weeks of outflows.

Fear & Greed
Sponsored by

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Does $LOCO really deserve to be up another 22% after Friday? Is it really next $CMG? Or next $PBPB and $NDLS?
Powered by WordPress.com VIP.