After U.S. stocks gained 30 percent last year and almost everything went up, measures of Standard & Poor’s 500 Index price momentum are slipping just as concern mounts that emerging markets will snuff out the rally.
Declines that erased $1.7 trillion from global stocks as currencies from Turkey to Argentina slid are proving a Wall Street maxim, according to Brian Barish of Cambiar Investors LLC: selling can start anywhere.
The Standard & Poor’s 500 Index will advance about 20 percent in 2014 after a sharp correction, according to Blackstone Group LP’s Byron Wien, who got the direction of equity and gold prices wrong in 2013.
The Standard & Poor’s 500 Index rose for the week, following the worst losing streak to start a year since 2005, as optimism over economic growth and corporate earnings overshadowed a weaker-than-forecast jobs report.
Options trading in benchmark gauges such as the Standard & Poor’s 500 Index is growing at the fastest pace since 2007, spurred by investors seeking protection from widespread declines after the broadest rally on record.
Prudential Financial Inc., the insurer that manages more than $1 trillion of investments, is set to commit more funds to emerging markets after the sector’s main index slumped and developed-country stocks rallied.