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Flight out of stocks slows

December 7, 2012: 10:05 AM ET
Investors pulled just $481 million from U.S. stock mutual funds during the latest week.

Investors pulled just $481 million from U.S. stock mutual funds during the latest week.

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.

Related: Bond investors, beware

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.

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Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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