Category: consumer discretionary

The Regional Breakdown of Stock Market Sectors Over Time



The following content is sponsored by MSCI

Regional Breakdown of Stock Market Sectors

A Regional Breakdown of Stock Market Sectors

Over the last decade, the composition of global stock market sectors has changed substantially. For example, the information technology sector’s weighting has nearly doubled while the energy sector’s weighting has shrunk by nearly three-quarters.

But which regions have gained or lost market share within the stock market sectors? In this graphic from MSCI, we show the regional breakdown of each sector in 2011 and 2021.

Regional Weights by Stock Market Sector

We’ve based our data on the MSCI ACWI Investable Market Index (IMI), a global equity index intended to represent the entire stock market.

Here is how regional weights by stock market sectors have changed in percentage point terms over the last decade. For example, emerging markets’ utility weighting shrunk from 0.5% to 0.3% of the global stock market, a decline of 0.2 percentage points.

 Emerging
Markets
North
America
Asia
Pacific
Europe, Middle East,
and Africa
Total
Utilities-0.2-0.1-0.3-0.5-1.0
Communication Services0.34.90.1-0.84.5
Materials-0.9-1.0-0.9-1.2-4.0
Industrials-0.40.7-0.6-0.3-0.7
Consumer Discretionary0.72.0-0.6-0.41.6
Consumer Staples-0.3-0.9-0.3-1.0-2.4
Health Care0.42.90.2-0.33.2
Financials-1.1-0.5-2.1-2.4-6.1
Information Technology0.88.2-0.20.79.5
Energy-1.2-4.8-0.3-2.0-8.2
Real Estate0.32.10.70.53.5

Financials shrunk the most in the (Read more...) Pacific region and Europe, Middle East, (Read more...)

The Top 100 Companies of the World: The U.S. vs Everyone Else


This post is by Omri Wallach from Visual Capitalist


Top 100 Companies of the World vs US

The Top 100 Companies of the World: U.S. vs Everyone

When it comes to breaking down the top 100 companies of the world, the United States still commands the largest slice of the pie.

Throughout the 20th century and before globalization reached its current peaks, American companies made the country an economic powerhouse and the source of a majority of global market value.

But even as countries like China have made headway with multi-billion dollar companies of their own, and the market’s most important sectors have shifted, the U.S. has managed to stay on top.

How do the top 100 companies of the world stack up? This visualization pulls from PwC’s annual ranking of the world’s largest companies, using market capitalization data from May 2021.

Where are the World’s Largest Companies Located?

The world’s top 100 companies account for a massive $31.7 trillion in market cap, but that wealth is not distributed evenly.

Between companies, there’s a wide range of market caps. For example, the difference between the world’s largest company (Apple) and the 100th largest (Anheuser-Busch) is $1.9 trillion.

And between countries, that divide becomes even more stark. Of the 16 countries with companies making the top 100 ranking, the U.S. accounts for 65% of the total market cap value.

Location# of CompaniesMarket Capitalization (May 2021)
?? United States59$20.55T
?? China14$4.19T
?? Saudi Arabia1$1.92T
?? Switzerland3$0.82T
?? Netherlands3$0.58T
?? Japan3$0.56T
?? France2$0.55T
?? Germany3$0.46T
?? South Korea1 (Read more...)

The 10 Most Heavily-Shorted Stocks of January 2021


This post is by Marcus Lu from Visual Capitalist


Short Sellers and the Most Shorted Stocks in January 2021

The Briefing

  • Retail brands, among others, have been the target of short sellers amidst the COVID-19 pandemic
  • Individual investors have rallied behind a number of these stocks in an attempt to force a “short-squeeze”

Short Sellers Look to Profit from Struggling Companies

The prospects of retailers such as GameStop have deteriorated over the course of the COVID-19 pandemic, leading many hedge funds to bet against them by taking short positions.

Shorting a company involves borrowing its shares, selling them at current prices, and then buying them back in the future at what is hopefully a lower price. Essentially, short sellers are betting that the company will underperform in the future.

The 10 Most Heavily-Shorted Stocks of January 2021

The following companies had the highest short interest as of January 29, 2021. Short interest is the % of a company’s shares that have been borrowed and sold, but not yet returned.

CompanyShort Interest (%)YTD Return (%)Sector
GameStop121%422%Consumer Discretionary
Dillards95%40%Consumer Discretionary
AMC Entertainment79%289%Communication Services
Virgin Galactic72%109%Industrials
fuboTV72%100%Communication Services
Bed Bath & Beyond65%41%Consumer Discretionary
Ligand Pharmaceuticals65%75%Health Care
National Beverage Corp.63%44%Consumer Staples
SunPower58%73%Technology
Tanger Factory Outlet Centers52%32%Real Estate

Source: YTD returns as of Feb. 2, 2021

Many of the companies on this list are brick-and-mortar based retailers that have struggled to attract business during COVID-19 lockdowns. This includes GameStop, Dillards (Read more...)