The Federal Reserve’s most aggressive policy tightening in two decades is sucking emerging markets into a “sell everything” slump, not even sparing assets that should do well when interest rates rise.
Take value stocks. Shares of mature companies with high dividends and cheap valuations are finding a bid in the U.S. and Europe, where investors are switching to them from more expensive equities in fast-expanding sectors like technology. But this so-called growth-to-value rotation is failing to happen in developing nations, where both types of stocks are falling in tandem.
