These days, it’s easier than ever to invest in companies abroad. And all this access has created some exciting opportunities for investors who want their portfolio to have a global reach.
In this article, I reveal the most popular global stocks last month from Saxo Markets and share some insider info to help you on your investing journey.
What were the most popular global stocks in October?
According to the latest data from Saxo Markets, it’s probably no surprise to hear that Tesla is the most popular stock among UK investors.
This is a big jump for Tesla’s EV stock that was sixth on this list during September. But it’s been a big month for the electric car company that managed to join the trillion-dollar club as its share price went on a big run.
Here’s the full list of the top global stocks on the Saxo Markets platform:
|5||Alibaba Group Holding (BABA)|
|9||AMC Entertainment Holdings (AMC)|
|10||Digital World Acquisition (DWAC)|
What do these popular stocks tell us about UK investors?
It’s always interesting to see what other people are investing in, and the selection here is definitely quite fascinating. Amongst the top ten you can see that there is a combination of:
- Blue-chip technology shares
- Meme stocks
- A Trump-backed SPAC (special purpose acquisition company)
- An energy company paying a decent dividend
Quite the motley crew of companions, I’m sure you’ll agree! I suppose you could say at least there’s some diversity there. Most of these companies would work well as part of a diversified portfolio, but it’s clear to see that priorities lie with growth and tech.
What could we see for global stocks in November?
It’s likely that COP26 is going to have an effect on stocks going forward, even if it’s just in anticipation of incoming changes. Green transformation shares are likely to attract a lot of attention and potential investment.
However, we’re in quite a strange situation. Right now, we’re still heavily reliant on energy and mining companies. A lack of innovation in these industries is part of the reason energy prices have been going bonkers.
So, although we need to transition to the companies of the future, the traditional energy companies aren’t dead yet and most countries still rely on fossil fuels. The high demand and high prices will likely lead to more profits in what has already been a record-breaking time for dividends.
We’re also seeing another strong earnings season for the big tech companies, which is good for balance sheets. But these results do not necessarily mean share prices will increase.
Is there anything else for UK investors to keep in mind?
It’s useful to see what other investors are buying, but you shouldn’t base your investing strategy on this. It’s not wise to go for stocks that fall outside your plans just because they’re popular.
Not every stock you buy will be a winner. But if you get to grips with the things you can control, this can set you up for success. When using a share dealing account, try and aim for low fees because this can maximise your returns as your gains compound.
And speaking of maximising returns, be sure to use something like the Saxo Markets stocks and shares ISA to make sure that any gains on your investments are protected from tax.
Investing is a great way to build wealth over the long term but returns aren’t guaranteed, and you may get out less than what you put in. So make sure you do your research before diving in.