Research Affiliates: Which countries are in correction territory?

Five major economies

Analysts at Research Affiliates have listed a number of countries which have entered correction territory, after an almost decade-long bull run, including Japan, the US, the UK, Canada and Germany.

The report Where is the economy going? said the situation in these regions was beginning to look "ominous" as they entered the latter stages of the business cycle. Research Affiliates' Vitali Kalesnik, Jim Masturzo and Michele Mazzoleni found by combining two metrics; the output gap, which measures the level of production, and country-specific slowdowns and expansions as measured by the Federal Reserve Bank of St. Louis, one could see what stage of the business cycle a country was in. The report labelled the four stages of the business cycle as bull economy, correction, bear economy a...