BOSTON (AP) - Investors continue to be cautious with their money. May was the third consecutive month that they've withdrawn more cash from U.S. stock mutual funds than they deposited into them. Bond funds continued to attract cash.
Industry consultant Strategic Insight said on Tuesday that a net $4.8 billion was withdrawn from U.S. stock funds last month. For the year, investors have pulled out a net $7.4 billion.
However, investors deposited a net $4.9 billion last month into funds investing in foreign stocks.
Bond funds attracted $14.3 billion in new cash, boosting their year-to-date total to $134 billion in net deposits.
Strategic Insight Research Director Avi Nachmany says investors are likely to continue favoring bonds until there's sustained job growth in the U.S. and progress in resolving Europe's debt crisis.