The markets are highly volatile right now, with plenty of swings in the prices of stocks, shares and funds. Investing in such challenging times can provide plenty of opportunities for those with a keen eye, but there are also plenty of pitfalls to avoid.
To offer some market insight, I’m going to reveal the most-bought investments in the UK last week, along with some tips to help keep your portfolio steady. Keep reading for the latest scoop in these curious times.
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What were the most-bought shares in the UK last week?
With plenty going on in the worldwide economy and in the UK, these were the most-bought shares (by number of deals) by UK investors using the Hargreaves Lansdown platform last week:
| Position | Company |
| 1 | Scottish Mortgage Investment Trust (SMT) |
| 2 | City of London Investment Trust (CTY) |
| 3 | Polymetal International (POLY) |
| 4 | Lloyds Banking Group (LLOY) |
| 5 | Evraz (EVR) |
| 6 | Rolls Royce Holdings (RR.) |
| 7 | SSE (SSE) |
| 8 | Legal & General Group (LGEN) |
| 9 | International Consolidated Airlines Group (IAG) |
| 10 | easyJet (EZJ) |
What do we know about these popular shares?
The top picks from last week tell us quite a lot about the state of investment markets and where investors’ priorities are right now.
1. Scottish Mortgage Investment Trust (SMT)
This extremely popular investment trust saw shares slide even further before recovering and stabilising.
Investing heavily in future growth and tech has led to great returns in the past. However, such investment means this trust is ill-suited to the current economic climate. Currently, the share price is at a similar level to what it was back in the summer of 2020.
However, this price suppression means long-term investors can effectively wind back the clock and pick up shares for a much cheaper price, all in the hope that growth will be back in fashion once inflation levels subside.
2. City of London Investment Trust (CTY)
This investment trust uses a very different approach to that of SMT. City of London is somewhat of a dividend superstar and is all about providing investors with a relatively stable income.
The trust has been dishing out notable dividends in the UK for years. So, as investors rotate away from tech and growth stocks, this trust serves as somewhere potentially safer to anchor during all the volatility and uncertainty.
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3. Polymetal International (POLY)
Commodities are making a return due to inflationary pressures and the continued squeezing of supply chains and resources.
As a result, businesses like Polymetal International that concentrate on precious metals and mining have reaped the rewards as investors are looking left and right for safe havens. However, what’s put these shares into the spotlight recently is the company’s links with regions close to Russia.
The share price tanked and then bounced, with investors hoping to take advantage of the questions surrounding the firm’s future.
4. Lloyds Banking Group (LLOY)
Unlike some stocks and shares, Lloyds has managed to benefit from the changing economic environment. Inflation and rising interest rates serve the business well in some ways.
However, general economic uncertainty in the UK and wider geopolitical issues are still big issues for this FTSE 100 bank. As a result, the firm is trying to diversify and investors clearly backed them as the share price rose throughout most of last week.
5. Evraz (EVR)
This is another company caught up heavily in the ongoing conflict between Russia and Ukraine.
The Evraz share price has been plummeting. With a heavy focus on industrial metals and manufacturing, both in Russia and elsewhere, the company has been facing unexpected pressures. Some interesting trivia for you regarding these shares:
- This company is part-owned by Chelsea FC owner Roman Abramovich
- The firm also has the lowest percentage of female board members of any FTSE 100 business
How can UK investors benefit from volatile markets?
To invest and buy shares, you’ll need to set yourself up with a share dealing account.
If possible, it’s worth using and account such as the Hargreaves Lansdown Stocks and Shares ISA in order to protect your future returns from tax.
The best way to benefit from market volatility is to make sure your portfolio is properly diversified and then invest regularly. By doing this, you’ll give yourself a better chance of success. And, regular investments can allow you to take advantage of price swings without having to time the market.
Just remember that all investing carries risk, and you may get out less than you put in. So, always invest sensibly, do your research and be careful not to overstretch your finances.
