We’ve seen further choppy action in the markets with plenty of stocks and shares having a tough time lately. This comes even after some positive earnings reports from a number of major US firms.
In order to give you some insight into what’s going on, I’m going to reveal the most popular investments for UK investors last week. I’ll explain some of the thinking behind these picks and how you can begin investing.
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What were the most popular shares for UK investors last week?
According to the latest data from Hargreaves Lansdown, these were the ten most-bought stocks and shares (by number of deals) on the platform last week:
| Position | Company |
| 1 | Scottish Mortgage Investment Trust (SMT) |
| 2 | Tesla (TSLA) |
| 3 | Lloyds Banking Group (LLOY) |
| 4 | Rolls Royce Holdings (RR) |
| 5 | Microsoft (MSFT) |
| 6 | ITM Power (ITM) |
| 7 | International Consolidated Airlines Group (IAG) |
| 8 | Argo Blockchain (ARB) |
| 9 | BP (BP) |
| 10 | Fresnillo (FRES) |
What do we know about these popular stocks and shares?
There’s quite an interesting mix of investments in this list. Here’s an update on why some of these stocks and shares attracted lots of buying interest last week.
1. Scottish Mortgage Investment Trust (SMT)
Things have been going from bad to worse, and this tech-heavy fund has been suffering.
In fact, its performance has been dragging down the FTSE 100 index. That said, tech stocks and shares have been having a hard time across the board. Some of SMT’s major holdings, such as Tesla (TSLA) and Netflix (NFLX), have taken a battering lately.
The good news is that this drop in share price has made this investment trust a lot cheaper. As a result, it’s a more attractive buy for investors with a long-term mindset.
2. Tesla (TSLA)
This monster electric vehicle (EV) stock came out with some great Q4 results last week.
However, beating analysts’ expectations isn’t enough right now to help growth stocks like this prosper. The Tesla share price is down around 20% in the last month, putting the price of each share well below $900 (£670).
It looks like plenty of investors here in the UK are keeping the faith and still see Tesla as a solid long-term buy. This is largely because the poor price performance is due to wider economic troubles.
3. Lloyds Banking Group (LLOY)
Lloyds remains a popular pick for investors. The share price looks fair, and plenty of people are banking on this firm doing well if interest rates continue to rise.
Lloyds bank is the UK’s largest mortgage lender. This means it’s primed to do well if rates rise, potentially making the lending arm of the business more profitable.
However, this doesn’t make it a sure bet. The Stamp Duty holiday is finished, which will likely reduce demand for mortgages. Also, the possibility of a housing correction could damage prospects for these shares.
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4. Rolls Royce Holdings (RR)
Rolls Royce suffered throughout the coronavirus pandemic but has slowly been building back towards previous highs.
Recurring issues around travel have stifled a potential big bounce. The plus side is that it has given investors the chance to load up on shares.
It’s not going to be smooth sailing just yet, but a full return to normality will greatly improve the situation for Rolls Royce. Renewed interest in FTSE 100 companies might also cause more investors to consider these shares for their portfolios.
5. Microsoft (MSFT)
For years, many investors felt like they missed out by not buying this blue-chip stock at lower prices.
The recent tech sell-off has hit Microsoft’s share price, making the company a more enticing buy for investors. This remains a solid long-term investment option, and UK investors are gobbling up shares at a decent price.
How do you begin investing in these stocks and shares?
If you want to invest in a diverse range of stocks and shares, it’s important to set yourself up with a top-rated share dealing account that provides plenty of choice. The best account for you will depend on your strategy and how often you invest, but you can calculate and compare brokerage costs here.
Seeing as we’re getting close to the end of the tax year, it’s a good idea to make use of your allowances. When you’re investing, the best way to do this is by using an account such as the Hargreaves Lansdown Stocks and Shares ISA. Doing this will reduce your tax burden and make it easier for you to build wealth in the long run.
Just remember that all investing carries risk. So make sure you do plenty of research when creating your strategy. Also, be aware that you may get out less than you put in, so make sure the rest of your finances are healthy before you invest.
