Traders’ Emerging Stocks Dreams Dashed by Late January Curse
- Historically, the fourth week of a year marks a turnaround
- Ukraine crisis, hawkish Fed stance stop rally in its tracks
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Investors betting emerging-market stocks will best U.S. equities this year have stumbled at the first hurdle.
Traditionally, the fourth week of January is when the market punishes investors who bet the trend in the opening days of the year will continue, and 2022 is proving no exception. Developing-nation equities just had their worst week since August after their strongest showing relative to the S&P 500 Index since 1990 in the previous three weeks.