When you fall out of fashion, it's hard to get back. Standard Chartered proved a good bet for investors after the financial crisis: Its heavy exposure to emerging markets enabled it to outperform its more Western-focused peers.

That has all changed this year. A trading update that predicted flat earnings for Standard Chartered in 2013 after a decade of growth prompted its shares to drop 6.5% Wednesday. That prolongs a miserable 2013 for the stock, which has fallen 15%. Investors have instead flocked to institutions that do business closer to home, such as Lloyds Banking Group, whose shares are up 60% this year.