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The Anatomy of a Market Correction

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The Anatomy of a Market Correction

The Anatomy of a Market Correction

Markets are rarely a straight march forward.

Even though the end destination is usually a bullish one, markets often take a far more scenic route to get there. Sometimes that means going off the beaten path, and other times it may mean taking a step directly backwards to get reoriented.

In investing parlance, the latter situation can be described as a market correction: a short-term duration market move between -10% and -20%.

These are significant declines that can be a “gut check” for investors, especially for those who haven’t experienced many of them in their investing careers.

Breaking Down a Market Correction

Today’s infographic comes to us from Fisher Investments, and it describes the anatomy of market corrections, while also visualizing much of the data around these common events.

The average market correction looks something like this:

  • Frequency:
    On average, there is one market correction that occurs each year
  • Length:
    The average correction lasts for 71.6 days
  • Depth:
    The average correction involves a 15.6% decline
  • Impact:
    A correction often results in increases in uncertainty, volatility, and media alarmism.

In the current bull market, there have already been eight corrections. The most noteworthy of these went from May 21, 2015 until February 11, 2016 and resulted in a -18.9% fall in stock prices.

Bull or Bear?

One of the biggest challenges created by market corrections is that they are also far from straightforward.

Corrections can be over in two weeks, or it can take almost a year for a correction to eventually revert back to a bull market. To complicate matters, there is also a chance that a correction may turn into a bear market – a fundamentally-driven and sustained decline where the market dips 20% or more.

While every correction is different, data can also help paint a clearer picture: between 1980-2016 there were 36 corrections in the U.S. market, and only five of them (about 14%) resulted in longer, sustained bear markets.

The flipside of this, however, means that 86% of the time, a correction ends up just being a blip on the radar of an otherwise intact bull market.

In other words, the vast majority of corrections end up providing an opportunity for smart investors to take advantage of lower prices before a bull market continues its climb.

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Retail

The World’s Top Retail Companies, by Domestic Revenue

As price pressures and e-commerce reshape shopping behaviors, we show the top retail companies by domestic revenue around the world.

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This circle graphic shows the world's top retail companies by domestic revenue.

The World’s Top Retail Companies, by Domestic Revenue

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The retail sector plays a vital role in powering economies, contributing $5.3 trillion annually to America’s GDP alone.

Moreover, the industry is America’s biggest private-sector employer, responsible for one of every four jobs, or 55 million employees. Yet in today’s challenging consumer environment, retailers are facing higher e-commerce penetration and inflationary pressures—across an industry notoriously known for razor-thin margins.

This graphic shows the world’s top retail companies by domestic revenue, based on data from the National Retail Federation.

Methodology

To be included in the rankings, companies must engage in a goods-for-consumer resale business accessible to the public and have direct selling operations in a minimum of three countries.

The rankings include both publicly and private companies, and are based on the most recent 52-week period analyzed by the National Retail Federation between January and March 2024. All revenue figures were converted to U.S. dollars.

Ranked: The Top 10 Global Retailers by Domestic Sales

Here are the leading retailers worldwide based on domestic sales as of 2023:

RankingRetailerDomestic Retail Revenue
(USD)
Share of Total Retail RevenueHeadquarters
1Walmart$532.3B85%🇺🇸 U.S.
2Amazon.com$250.0B70%🇺🇸 U.S.
3Costco$175.4B75%🇺🇸 U.S.
4The Home Depot$142.0B94%🇺🇸 U.S.
5Walgreens Boots Alliance$105.1B89%🇺🇸 U.S.
6Alibaba$91.5B97%🇨🇳 China
7Apple$70.9B87%🇺🇸 U.S.
8Aeon$64.3B93%🇯🇵 Japan
9Schwarz Group$56.5B32%🇩🇪 Germany
10Rewe$55.5B75%🇩🇪 Germany

Walmart towers ahead as the world’s largest retailer with $532 billion in domestic revenue—more than Amazon.com and Costco combined.

Known for its everyday low prices, Walmart achieves a competitive advantage through pricing goods approximately 25% cheaper than traditional retail competitors. Overall, groceries make up more than half of total sales. While its main customer base is often low and middle-income shoppers, the retail giant is seeing a surge in sales from higher-income customers as shoppers seek out lower grocery prices.

E-commerce giant, Amazon, is the second-biggest retailer globally, commanding nearly 40% of online retail sales in America. Since 2019, the number of Amazon employees has grown from 800,000 to over 1.5 million in 2023.

While the company has tried to introduce online grocery platforms to the market, it has largely fallen flat given its clunky system in a highly competitive market.

Like Amazon, China’s e-commerce juggernaut, Alibaba, stands as a leading global retailer. Overall, 97% of revenues were generated domestically through online marketplaces Taobao and Tmall. In recent years, the company has focused on international expansion, delivering products to 11 markets including America, in just five days.

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