Category: rising interest rates

Ranked: The 100 Biggest Public Companies in the World


This post is by Dorothy Neufeld from Visual Capitalist


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Data visualization showing the biggest Companies in the World 2022 (preview image)

The Biggest Companies in the World in 2022

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This year has been shaped by uncomfortable macroeconomic headwinds.

Trillions of dollars were erased in public company market capitalizations, investor confidence waned, and cost pressures squeezed consumer pocketbooks.

Taken together, many of the world’s largest companies experienced sharp declines in market share. Still, a few companies in key sectors had positive growth over the year.

As 2022 comes to a close, the above infographic shows the biggest companies in the world, using data from Companiesmarketcap.com.

The World’s Largest Public Companies in 2022

Today, Apple stands as the world’s most valuable company, towering at a $2.3 trillion valuation.

Despite the tech downturn of 2022—driven by rising interest rates and slower sales—Apple maintained its top spot. This was largely thanks to record revenues and healthy consumer demand for iPhones, which drive about half of its total revenue.

Following Apple is Microsoft. Unlike Apple, Microsoft has faced slower earnings over the year due to lower demand for personal computers and the weighing impact of a strong U.S. dollar. Overall, about 50% of the company’s sales take place overseas.

As we show below, there are now only four companies left in the trillion dollar market cap club.

2022 Rank
CompanyMarket CapitalizationSectorLocation
1Apple$2.3TTechnology🇺🇸 U.S.
2Microsoft$1.9TTechnology🇺🇸 U.S.
3Saudi Aramco$1.8TEnergy🇸🇦 Saudi Arabia
4Alphabet$1.2TTechnology🇺🇸 U.S.
5 (Read more...)

Visualizing (and Understanding) an Inverted Yield Curve


This post is by Dorothy Neufeld from Visual Capitalist


Visualizing (and Understanding) an Inverted Yield Curve

For a few months in 2019, the yield curve inverted and warned of a potential recession.

Towards the end of 2021, it happened again. And throughout 2022, the inverted yield curve has looked more and more extreme. So what does an inverted yield curve look like, and what does it signal about an economy?

The above visualization from James Eagle shows the yield curve from November 2021-2022 using eurodollar futures yields—which serve as an indicator for the direction of the yield curve.

What Denotes an Inverted Yield Curve?

Generally speaking, the yield curve is a line chart that plots interest rates for bonds that have equal credit quality, but different maturity dates.

In normal economic conditions, investors are rewarded with higher interest rates for holding bonds over longer time periods, resulting in an upward sloping yield curve. This is because these longer returns factor in the risk of inflation or default over time.

So when interest rates on long-term bonds fall lower than those of short-term bonds, it results in an inverted yield curve.

The worrying trend is that an inverted yield curve in key government securities such as U.S. Treasuries can often foreshadow a recession. For every recession since 1960, an inverted yield curve took place roughly a year before, with just one exception in the mid-1960s.

This is because the yield curve has steep implications for financial markets. If the market predicts economic turbulence, and that interest rates (Read more...)