Not to copy their moves, but the insights can tell you a lot about big-picture market movements, highlighting sectors or businesses you may have overlooked.

Top movers for UK investors buying and selling shares

To get your investment juices flowing, here’s a peek behind the curtain to see the top movers on the FinecoBank platform last week:

1. Melrose Industries 100% Buy
2. moneysupermarket.com  56% Buy, 44% Sell
3. RELX 100% Buy
4. Bluejay Mining  100% Buy
5. Marks and Spencer Group  100% Buy
6. Centrica  51% Buy 49%, Sell 51%
7. EQTEC  100% Buy
8. KEFI Gold and Copper  100% Buy
9. Pan African Resources  100% Sell
10. IOG  100% Buy

What we know about the shares investors were buying

If you look closely, you’ll notice some overarching patterns in the shares that investors are choosing to pump money into right now.

Buying interest has been steadily increasing for firms in sectors such as manufacturing and infrastructure, alongside energy and commodities. This includes the likes of:

• Melrose Industries
• Bluejay Mining
• EQTEC
• KEFI Gold and Copper
• IOG

Against the current backdrop of high inflation, rising interest rates and ongoing supply squeezes, these are the sort of investments that investors are choosing to diversify and round out their portfolios.

What we know about the shares UK investors were selling last week

Here’s what we know about the shares being sold last week:

moneysupermarket.com

These shares have had a tough few years. With the price continuing in its wider decline, plenty of investors see no hope and 44% were selling their shares.

But, the remaining hopeful bunch of buyers believe there’s still opportunity for a rebound as travel returns and perhaps an eventual comeback of competitive energy tariffs.

Centrica

This is a firm that’s divided UK investors for some time now. However, the owner of British Gas has seen some solid profits lately, and the price has been on a steady uptrend.

Nevertheless, 49% of investors chose to sell shares last week, perhaps banking some short-term profit.

Pan African Resources

Following a renewed interest in gold and mining, the share price is up by over 40% in the last six months. But, this didn’t stop 100% of traders selling their shares last week.

I think this is some smart money being taken off the table, diversifying profits elsewhere after such significant growth.

Why it’s important to pick out the right shares and investments to diversify

I know that many of you may have been concentrating too much of your portfolio on tech in recent years, I certainly did!

With rock-bottom interest rates and a somewhat deflationary environment, tech and growth stocks have had a booming run.

It’s difficult to stay diversified when one sector seems to be on a never-ending upward trajectory. But, everything changes and nothing stays the same, especially in the markets!

So, try and make sure you build in some diversification so that you’re always prepared for economic shifts and changes to investing sentiment.

The post These were the top shares UK traders were buying and selling last week! appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

George Sweeney has no position in any of the shares mentioned. The Motley Fool UK has recommended Melrose, Moneysupermarket.com, and RELX. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With the current tax year ending, many investors have had their stocks and shares ISAs on their minds. They’ve been searching a turbulent market for investments to stuff into the tax wrapper to make the most of their yearly allowance.

To show you what’s been getting ISA investors excited, I’m going to reveal the most-bought investments last month. 

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What were the 10 most popular ISA stocks and shares last month?

According to fresh data from Freetrade, these were the ten most-bought investments by ISA holders on the platform in March:

What do we know about these stocks and shares?

Here’s a breakdown of the potential investing motivations behind some of these picks.

1. Tesla (TSLA)

Tesla was making headlines amongst the investment community once again! This time, the price of the stock soared following the announcement of another potential stock split.

The idea behind this next split is to allow the company the opportunity to pay a dividend to investors at some stage.

Although splitting a stock doesn’t actually add any extra value, it excites investors on a psychological level. And sometimes, that’s enough to drive demand, along with the share price.

2. Vanguard S&P 500 UCITS ETF Acc. (VUAG)

It’s been a rough start to the year for the world’s most popular index – the S&P 500.

Plenty of investors continued to invest even as the price dropped. But, in March we’ve seen a slight recovery as the initial shock of Russia’s invasion of Ukraine has settled.

Some clarity around interest rate hikes from the Federal Reserve has also led to more confidence in the tech stocks that make up a big chunk of this index.

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3. AMC Entertainment (AMC)

The inclusion of AMC back amongst the most popular lists is curious. It can be seen as both a good and a bad sign:

• Good because resurgent interest in more speculative and risky assets can be a signal that confidence in the market is back, which can lead to a positive spell for investments.
• Bad because speculating and gambling with investments can create sketchy market conditions and sometimes lead to bubbles.

4. GameStop (GME)

Similar to AMC, the return of the meme stock is a strange market indicator. It feels like we’ve jumped straight from cautious to speculative, with not much ground covered in between.

The GameStop (GME) share price has almost doubled in the past month. So, part of this rebound in popularity might be the case of investors hoping to catch the next wave and make a quick profit.

But, to be perfectly honest, although money can be made, using your stocks and shares ISA with a long-term investing mindset can be the more useful course of action.

5. Vanguard S&P 500 UCITS ETF Dist. (VUSA)

This is a similar index fund to VUAG, except for one major difference: with this fund, any dividends are paid out to investors. This is interesting because in recent times ‘distribution’ funds have been more popular. Investors have been choosing to get their shareholder rewards immediately instead of reinvesting them.

The fact that more stocks and shares ISA investors are choosing the ‘accumulation’ option over the ‘distribution’ one is a further sign that long-term investing confidence is making a comeback.

Where can you start investing in a stocks and shares ISA?

Although this tax year is coming to a close, the good news is that you get a fresh £20,000 allowance to use on 6 April.

You’ll first need to set yourself up with a top-rated stocks and shares ISA account. Ideally, one with low fees and that gives you a diverse choice of investments to pick from.

Remember that investing always carries a degree of risk. So, make sure you have a long-term investing horizon and ensure you’re aware that the value of your investments could fall as well as rise.

Please note that tax treatment depends on the individual circumstances of each individual and may be subject to future change. The content of this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post As the tax years wraps, these were the top ISA stocks and shares last month! appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

It seems like confidence in UK shares is surging. But is the market deserving of this optimism and support? Or is it the case that investors are becoming arrogant in their hopes?

Here’s what’s going on right now with UK investments, why investors think we’ve turned a page and how you can invest in the best British companies around.

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What’s going on with British shares?

After record outflows of £5.3 billion during 2021, it seems like investors have changed their tune and are lapping up UK shares.

According to a recent survey of ISA holders by Freetrade and InvestingReviews.co.uk, one in five investors say they plan to increase their exposure to UK shares.

And, a paltry 4% say they will be reducing their UK investment holdings.

Why are investors more confident in the UK market?

Dan Lane, senior analyst at Freetrade believes that part of this British resurgence is to do with value investing and a change in sentiment towards US growth stocks. He says: “Maybe the UK market’s relatively cheap valuation is proving too hard to resist, or maybe the allure of US tech is waning slightly.

“Whatever the reason, the UK seems to be back on the menu in 2022. Investors will still need to maintain that long-term view though.”

He goes on to explain that volatility aside, investing your cash in the right way can help to beat back the nasty effects of inflation. He explains: “What is clear though, is leaving your money in a cash account is really just not an option for anyone hoping to generate meaningful returns. It doesn’t carry the same risks as investing but cash drag is real.”

Inflation might concern some investors, but that should make them look at their assets and how well-prepped their companies are to take charge of their own destiny regardless of what’s happening in the global economy.”

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How can investors find good value UK shares?

This might sound like a difficult task, but finding great long-term investments doesn’t have to be a chore.

If searching through the financial reports from every firm on the London Stock Exchange isn’t your jam, that’s okay! Here are two quick and easy ways that you can find great value UK investments without all the headaches and legwork:

1. Make use of The Motley Fool’s Share Advisor service, regularly dishing out excellent stock picks.
2. Research and find an investment trust (for example Temple Bar) that focuses on UK value investing.

Where can you start investing in British shares?

Investing in UK firms and funds is now easier than ever. Your first step is to get yourself set up with a share dealing account.

Ideally, it’s worth holding your shiny new British investments in a stocks and shares ISA. This type of account has the incredible benefit of protecting your investment gains from tax.

Just remember that all investing carries a degree of risk, and you may get out less than you put in. So, make sure you’re on top of the rest of your finances and don’t invest more than you can afford.

The post Confidence or arrogance? Investors are backing British shares in buckets! appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

You’re probably sick and tired of hearing about inflation. But, at the same time, you might also be finding yourself looking everywhere for the best way to overcome this hurdle. So, could value investing be the answer to protecting and growing your portfolio?

In this article, I give you a brief overview of how value investing works. I explain why it can be useful in an inflationary environment and how to find and buy cheap shares. Keep reading for an insight into value investments.

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What is value investing and how does it work?

This style of investing was made popular by Warren Buffett (amongst others). It mostly relies on finding undervalued stocks and shares to invest in.

Sometimes, you might see people refer to value investments as ‘cheap’. This is because the basic idea is that the current share price doesn’t represent the true value of that stock.

Although any share can be considered ‘good value’ at times, value investing is more of an overall ethos. Often, it’s lauded as the ‘proper’ way to invest. However, value investors can occasionally be somewhat snobby with strict principles that don’t always apply to booming sectors like tech.

Why might value investing be a good strategy when there’s high inflation?

You might think that growth stocks are better in periods of inflation because, well, they’re meant to grow! And, the whole worry about investing during high inflation is that you want returns to outpace inflation so that your money isn’t losing value.

However, inflation has a slightly strange relationship with the price of shares, especially for growth stocks. This is because these stocks are basically priced on future returns. But, if inflation is high, when you look years ahead, this devalues how much a company’s returns will be in real terms.

So, this is where value investing comes into play. Many stocks and shares that fall into the ‘value’ category tend to be businesses that are making cash. More importantly, they’re making cash today.

When inflation is running hot, it can make more sense to back firms making a profit right now. This can be a better strategy than putting your faith in shares that simply hold the promise of growth and profit. Money invested in growth stocks will be worth less if inflation stays high.

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What do the experts think about the current investing landscape?

According to Capital.com, Peter Schiff, CEO and chief economist at Euro Pacific Capital, had this to say about investor sentiment right now: “I think 2021 represented the actual peak of the speculative mania where investors threw all reason and caution to the wind and just piled into anything that was going on.

“But now, I think we’re going to see a return to a more traditional value, where the stock pickers are going to start to make money, not the indexers.

“Those people who are actually doing their homework and who are finding value in businesses and buying them cheap and getting a good yield. I think that’s where the money is going to be flowing out for many, many years.”

How do you find good value shares?

Don’t worry if you’re not an expert stock picker. There are some simple ways that you can find great value shares to invest in without spending every waking hour poring over financial statements.

Here are three ways to find cheap shares:

1. Get some inspiration from The Motley Fool’s Share Advisor service
2. Research investment trusts that focus on value investing
3. Take a look at the holdings of Berkshire Hathaway (basically Warren Buffett’s portfolio), or just buy their shares

Where can you start investing in cheap stocks and shares?

Whether you find your own shares or get some guidance when it comes to value investing, you’re going to need a share dealing account if you want to actually invest.

Seeing as you’re looking for cheap shares and investments, it’s also worth setting yourself up with a cheap share dealing account. There’s no point in spending time finding good value investments and then paying high fees to buy them.

Just remember that no matter how much research you do, there are still risks. When shares are cheap, this doesn’t guarantee that you’ll see better returns. So, always remain sensible and diversify where possible.

The post Could value investing to buy shares like Warren Buffett help you beat inflation? appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

As the end of the tax year swiftly approaches, now is a good time to take stock and survey your investment options. Perhaps you need to use up some more of your ISA allowance before the deadline or get some inspiration for next year.

So, to get your investing brain fired up and ticking over, I’m going to reveal the best-performing investment trusts from last month. I’ll also explain which funds were the most popular among UK investors.

Keep reading for a detailed scoop on the funds making money and the ones attracting lots of buying interest!

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What were the best-performing investment trusts last month?

According to data from Morningstar, these were the 10 funds with the highest returns in February:

Are there any useful insights to be drawn from these profit machines?

Unsurprisingly, a lot of the funds making this top ten focus on investing in mining, commodities and energy. There was already a global squeeze on energy resources, and the conflict in Ukraine has only tightened that pressure grip.

Although plenty of FTSE 100 firms with ties to Russia have seen their share prices suffer, those who don’t have connections have benefited from rising prices and increased demand.

As investors attempt to hedge against the high inflation we’re seeing in most developed countries, plenty of them are also flocking to traditional safe havens like gold to try and preserve wealth.

Because investment trusts have a fixed supply of shares, this increasing demand for funds with certain investing styles (e.g. backing gold or energy), drives up the share price. This is why some of the returns are so high.

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What were the most popular investment trusts last month?

Now that you’ve seen the 10 investment trusts that have made the biggest returns for investors, here are the 10 that have been most popular on the Interactive Investor platform:

Why were some of these choices so popular?

It’s interesting to see that many investment trust investors aren’t following economic trends or attempting to grab the funds making the most returns. Instead, they’re taking Warren Buffett’s advice and being ‘greedy whilst others are fearful’.

Although there are some defensive picks here, such as City of London (CTY) and BlackRock World Mining (BRWM), plenty of these choices are growth or US-focused. This includes the likes of:

• Scottish Mortgage (SMT)
• Polar Capital Technology (PCT)
• Allianz Technology (ATT)
• Edinburgh Worldwide (EWI)
• Baillie Gifford US Growth (USA)

Many of these growth-centric investment trusts have posted meagre returns or even significant losses over the last twelve months. However, investors see this price depletion as a great long-term investing opportunity.

This highlights that although there’s been a shift in what’s making money right now, plenty of investors are still looking at the bigger picture and expanding their time horizons.

How can you pick the right investment trusts to put your money into?

It’s important that you don’t just copy what others are doing when it comes to investing. Seeing what’s making money and what’s popular gives you a useful peek inside the brains of UK investors. But, it’s important that you find investments that suit your investing strategy and individual goals.

Once you’ve decided what you’d like your long-term plan to look like, you’ll need a share dealing account that provides a decent range of investment trusts. An account such as the Interactive Investor Stocks and Shares ISA will also protect your returns from tax.

Just remember that all investing carries a certain degree of risk, and you may get out less than you put in. So, always do your research and make sure you don’t invest more than you can afford to lose.

The post Revealed: the most popular and best-performing investment trusts last month! appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

With the end of the tax year approaching, ISA season is well underway. You’ve probably come across lots of material encouraging you to make the most of your ISA allowance.

But, is it even realistic to maximise use of the allowance based on the current limit? Some people don’t think so.

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What is the current ISA allowance?

Right now, the ISA allowance is £20,000 per tax year across all ISA accounts you have. If you want to, you can use the full allowance on your stocks and shares ISA and pick up heaps of great investments.

You have just under two weeks to make the most of your ISA allowance ahead of the 5 April deadline.

However, Victor Trokoudes, chief executive and co-founder of investment app Plum, believes that this limit is irrelevant for the majority of younger investors.

Why is the ISA limit irrelevant for young investors?

According to data from HMRC, the average total amount held in ISAs is:

• £6,450 for 18-24-year-olds
• £7,750 for 25-35-year-olds

So, the bulk of investors under the age of 35 aren’t even using half of a single year’s £20,000 ISA allowance!

Data from Plum also shows that the average saver puts away £150 each month, with just under £100 of that going to investments. Troukoudes explains: “Every year we see reminders that the end of the tax year is approaching and to fill up our ISA allowances.

“But this isn’t a particularly useful message for young people that struggle to get anywhere close to that amount.

“In fact, the tax-free allowance is more or less irrelevant to millions of people on average incomes, who can’t afford to save £20,000 a year.”

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Does this mean younger investors should ignore their ISA?

Absolutely not! But, there could be a slight adjustment to some of the messaging sent out to young investors in the UK.

Instead of banging on about saving twenty grand, making plenty of savers feel inadequate, there should be more emphasis on the importance of small, regular contributions to a stocks and shares ISA account.

Even if you’re only able to contribute small sums to your account, compound interest means that your portfolio can grow immensely over time.

And, the main perks of the ISA wrapper allow this money to grow without the need to pay tax on the gains. Then, when you want to withdraw money, it’s also tax free.

Why is manageable saving and investing so important?

Troukoudes goes on to reveal some insights into this matter. Specifically, why small regular contributions to your ISA are so crucial for short-term security and building long-term wealth. He explains, “This is especially important in the current environment with rising living costs. Having a short-term rainy day fund is really essential to building financial security.

“Once this is done, then the long-term wealth growth can begin in earnest. Over a long time horizon, the potential benefits run into the hundreds of thousands of pounds.”

What should young investors do with ISAs and savings?

Don’t beat yourself up if you’re not able to save and invest £20,000 into your ISA each year.

What’s most important is that you set yourself up with a top stocks and shares ISA account and then invest what you can. It’s those modest, consistent contributions that can allow you to build wealth over your investing lifetime.

If you want to roll the dice, Plum is offering entry into a £20,000 cash giveaway to new and existing Plum Plus customers who open an account before the tax deadline.

Just remember that when investing, there are always risks. So, make sure you’re on top of the rest of your finances and only invest money you’re comfortable putting away for the long term.

Please note that tax treatment depends on the individual circumstances of each individual and may be subject to future change. The content of this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post Is the £20,000 ISA allowance irrelevant to younger investors? appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

It would be an understatement to say that the current investment landscape is highly volatile. As a result, investors on board for the ride are choosing not to simply go with the flow. Instead, they’re making certain changes to their investment portfolios.

Here’s a look at the big adjustments UK investors are making and what you can do to make sure your holdings are kept safe.

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What did 7,000 investors do with their portfolio last month?

According to new research from Hargreaves Lansdown, more than 7,000 investors took a long look at their portfolios and made some serious moves.

This activity was partly encouraged by notifications the platform sent to investors. And investors took steps in an attempt to keep up with altering market sentiment.

So, what were these changes all about? The answer is quite straightforward: risk.

How did investors risk-adjust their portfolios?

With plenty of uncertainty, lots of investors in the UK have decided it’s time to batten down the hatches and diverge from the riskier assets that have grabbed headlines over the last couple of years.

Nadeem Umar, senior investment marketing and content manager at Hargreaves Lansdown explains why the brokerage used communication nudges to encourage investors to lower their risk exposure.

He says, “The two biggest ways people could improve their performance was by increasing their diversification and not taking too much risk.

“In particular, we discovered that the wider variety of investments someone had, the better their performance was, on average, over the long term.”

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Is there a portfolio risk if you hold too much cash?

You might think that the easy solution is to sell out of the market altogether.

However, holding too much cash in your portfolio comes with its own risks.

Once you’ve got a decent emergency fund set up (ideally three to six months’ worth of expenses), all your remaining cash is losing value by the day. This is due to the high levels of inflation we’re seeing right now.

If inflation is running at 5%, you can think of this as a -5% return on your cash, which is not ideal. Inflation is always a concern for your money, but in times like these, it’s even more of an issue.

Although Hargreaves Lansdown encouraged investors to diversify and reduce their risk, they also nudged those on the other end of the spectrum to consider putting idle cash to work. As a result, over 1,200 investors who held a fifth or more of their portfolio in cash took action.

How can you invest with your portfolio whilst managing risk?

What you consider risky is likely to differ greatly from another investor’s perception. What’s deemed risky for you will depend on loads of factors such as your:

• Strategy
• Long-term goals
• Investing timeline

Some investments come with a higher level of risk than others. But more risk can lead to greater rewards in some instances. So, you don’t always have to opt for the lowest risk possible. You should aim to invest and buy shares in companies you’re comfortable supporting. 

By creating a diversified portfolio, you can hold a mixture of assets that lie along the spectrum of risk. This way you have your safer investments as a backbone and your more speculative picks as outer limbs. Doing this gives you some risk exposure and some stability. The exact way you organise this will depend entirely on your personal circumstances.

Just remember that all investing carries a degree of risk, no matter how diversified your portfolio is, and you may get out less than you put in. So, always invest carefully and make sure the rest of your finances are looking healthy first.

The post Here’s what more than 7,000 UK investors did to their portfolio last month appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

Here at The Motley Fool, we talk a lot about keeping steady during volatile times. And last week was an excellent example of why this approach is so important when you’re investing.

After some rough weeks, the market saw a big bounce last week. This kind of unexpected rebound is why trying to time the market is an impossible task. I’m going to reveal last week’s top shares and explore some investing insights.

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Which shares were most bought by UK investors last week?

During a much-needed upswing in the markets, these were the ten most-bought shares (by value of deals) on the Hargreaves Lansdown platform last week:

What do we know about these top shares?

By looking at where investors are putting their money, you can gain some useful insights into the state of the market and investor sentiment. Here’s a brief breakdown of what’s going on with the five most popular picks.

1. iShares Core FTSE 100 UCITS ETF (ISF)

This ETF (exchange-traded fund) is essentially an index fund that tracks the FTSE 100.

Using an index fund like this is a simple and cheap way to invest in the biggest UK companies. It’s a sought-after investment on these shores, but now more than ever.

The FTSE 100 saw a steady rise throughout last week as the current economic climate serves the businesses that make up a big chunk of the index. This includes firms in the energy, financial and consumer staple sectors.

2. Glencore (GLEN)

Glencore shares have been steadily growing in popularity, and the ongoing uncertainty around energy has created conditions for the company to prosper.

This commodity and energy giant is a strong pick for investors looking to get some broad exposure within high-demand areas such as metal mining, fuels and even wheat!

The shares have seen a lot of growth, and plenty of investors still believe the climate is ripe for more growth. However, it’s important to remember that past performance is not an indicator of future results.

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3. Scottish Mortgage Investment Trust (SMT)

These shares have been battered in recent months, basically wiping out much of the gains made over the last couple of years.

However, there was a glimmer of hope last week as the share price rebounded. This bounce has plenty of investors grateful that they continued picking up shares in SMT at discount prices.

This investment trust focuses on the long-term landscape. It attempts to outpace inflation by hunting down the outliers trying to disrupt industries, hopefully resulting in massive growth.

4. Rolls Royce Holdings (RR.)

Always a popular choice amongst UK investors, Rolls Royce has had a turbulent time lately.

The share price saw a big fall at the beginning of the coronavirus pandemic due to restrictions around travel. Since then, the price has remained muted, but many investors have been hopeful about a strong recovery.

However, Rolls Royce shares took another tumble following the announcement that chief executive Warren East is stepping down. Still, long-term investors view this as another short-term issue, and continue to buy shares in this iconic firm.

5. Vanguard FTSE 100 UCITS ETF (VUKE)

Here’s another way you can invest in the FTSE 100.

Although this ETF has a very low ongoing investment cost of 0.09%, it is slightly higher than the iShares (ISF) fund’s current cost of 0.07%.

This is potentially why the iShares version is more popular, but Vanguard still has a supportive base of investors.

How do you invest in top shares?

If you want to invest, you’ll first need a share dealing account. With the end of the tax year just weeks away, it’s also worth using something like the Hargreaves Lansdown Stocks and Shares ISA. Protecting your investment gains from tax is an excellent way to boost your odds of becoming a successful investor.

Looking at the value of deals rather than the number of deals gives us a different market perspective. Whereas the number of deals tells us what’s grabbing investor intention, the value of deals metric shows us where the big money is moving. Seeing this allows you to ‘swim with the whales’.

Just remember that all investing carries risk. You might get out less than you put in, so always consider any moves carefully before jumping in.

The post UK investors were buying these top shares during last week’s market bounce appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
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You might be watching market movements right now and suffering from whiplash as prices see-saw back and forth. When it comes to investing in stocks and shares, periods of volatility like this can just be part of the bargain you make when you become an investor.

However, during volatile moments, it’s important that you stay prepared and calm. To help you ride out the turbulence, I’m going to reveal some key things you should avoid doing. Keep reading to find out the proper way to conduct yourself when share prices are all over the shop!

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5 things to avoid during market volatility

These five points don’t just apply to the current bearish market. It’s guidance you can carry with you into future periods of uncertain markets.

1. Don’t make any knee-jerk reactions

When you see the price of your investments take a massive dip, your immediate thought might be that you need to take immediate action.

However, this is usually the worst thing you can do. When the price of your investment falls, this is just on paper. It’s only when you make a sale for that lower price that you crystallise your losses.

You might also be tempted to switch to a different asset or investment. But, it’s important to remember that everyone around the world will think along similar lines. This could leave you overpaying, getting a bad deal when moving and re-investing your money.

2. Avoid panic selling if there’s no underlying change to the stock

If nothing has changed about the business you’re investing in other than the share price, take a moment to assess.

Sometimes it is the case that changes in the economy can hurt a stock. However, on many occasions, an investment may lose value through no real fault. It’s simply keeping in line with wider market movements.

Don’t ignore what’s going on, but if there’s been no fundamental change since you bought the shares, make sure you don’t panic sell.

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3. Don’t buy shares just because the price has gone down

Although a volatile market can provide you with some great opportunities to buy shares, you still need to research and consider any moves carefully before investing.

If a stock’s value drops by 20% or 30%, don’t assume this means you can make an easy return. Sometimes stocks get hurt and it takes a long time to recover. Other times, they are permanently damaged, never getting back to previous highs.

Avoid trying to ‘buy the dip’ without doing your due diligence.

4. Resist selling out of the market completely

When the prices of equities are falling, plenty of people will crawl out of the woodwork screaming that you need to sell everything and move into cash.

Then, you wait until the market hits the bottom and buy back in. Timing the market like this sounds so simple, but in practise it’s near impossible.

Although holding onto some cash can work in your favour, making massive moves to sell in and out of the market completely is often not the best course of action. You’d also be forking out plenty of broker fees and potentially paying a lot of tax if you’re not using a stocks and shares ISA account.

5. Don’t expect everything to go perfectly

Sometimes, it’s unrealistic to think you can come out of wonky moments in the market completely unscathed.

It’s also important to understand that any lasting impact on individual stocks may not be known for years. Down the road, we can look back with 20/20 hindsight.

So, if you set your expectations and become comfortable with the fact that some of your individual investments might suffer, the rest of your portfolio can still survive and thrive – as long as you’re diversified and keep a long-term investing mindset!

The post Watch out! 5 things to avoid when investing in bearish volatile markets appeared first on The Motley Fool UK.

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• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up

There’s not long left now before the end of the tax year, which means time is running out to use your remaining ISA allowance to invest in stocks and shares.

Here at The Motley Fool, we’re big advocates of a long-term ‘buy and hold’ strategy. And there’s no better place than an ISA to put that into practice. So, to give you some investing inspiration, let’s take a look at some expert stock picks.

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5 top stocks and shares to consider for your ISA

The professionals over at Hargreaves Lansdown have put on their thinking caps and come up with five investments that they believe would be a great fit for investors looking to make the most of their stocks and shares ISA allowance.

Here’s what their analysts came up with and an explanation why they’re solid picks.

1. Lloyds Banking Group (LLOY)

These shares are making something of a resurgence, becoming a popular choice among investors in recent times.

Lloyds have battled and prospered throughout plenty of changing market conditions over the years, finding ways to adapt and overcome whatever the UK and global economy throws at them.

Being the UK’s largest mortgage lender, the bank’s adaptability and resilience are bolstered by the fact that rising interest rates will play into the hands of the firm.

So, what does this all mean for the share price? The analysts at Hargreaves Lansdown think these are great shares to own because they have an impressively low cost to income ratio, which means they can ride out tough times. The shares also come with a tasty dividend payment, although this is not guaranteed.

2. Microsoft (MSFT)

As a trailblazing tech stock that laid much of the groundwork for the computing and software industry, Microsoft remains a relevant and profitable business.

The company is beginning to move its focus towards cloud computing, leaving plenty of room for potential growth. A recent acquisition of major games company Activision also shows how ambitious Microsoft’s plans are.

Analysts believe this is a great choice for your stock and shares ISA because Microsoft offers:

• A 1% dividend payment
• A profitable business model with a manageable price to earnings (P/E) ratio of 28.7
• Lots of room for future growth with expansion into new areas

3. Royal Mail (RMG)

You’re probably well aware of this business. Even though writing and sending letters is going swiftly out of fashion, delivering packages is a booming business.

Royal Mail has continued to work on cutting costs to make the company more efficient. Smart corporate moves and a healthy level of custom in the UK and abroad have got plenty of stocks and shares ISA investors excited about the future.

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4. Smith & Nephew

The medical device maker is looking to rebound in a big way now that the coronavirus pandemic is well and truly in our rearview mirrors.

The firm adjusted to the impact of the pandemic and became a leaner company. These shrewd moves reduced costs without hindering the operational capacity.

Supply chain issues could still hamstring the company’s goals. However, a prospective 2.3% dividend payment, a healthy P/E ratio and a lower cost base make these shares an interesting option for ISA investors.

5. United Utilities Group (UU)

Although water may not sound too exciting, this investment has plenty of investors enthusiastic about future growth. This isn’t a jet-fuelled superstar growth stock, but these shares have been progressing comfortably over the last few years.

A comfortable P/E ratio and a future dividend yield of around 4.5% definitely makes this firm a strong contender to consider including in your stocks and shares ISA account.

How to invest using a stocks and shares ISA

If you’ve not already got an ISA account set up, you should consider a platform such as the Hargreaves Lansdown Stocks and Shares ISA. In our view it could be a great choice for beginners, thanks to its intuitive platform, and offers plenty of investment choice.

For those of you already using an ISA, try and make the most of this year’s allowance to benefit from the tax advantages. It’s also worth doing a quick check using our broker cost calculator to see if you could save money by switching to a platform that’s better suited to your investing style.

Just remember that when it comes to investing, your capital is at risk and you may get out less than you put in. So, consider any moves carefully and don’t overstretch your finances.

Please note that tax treatment depends on the individual circumstances of each individual and may be subject to future change. The content of this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post 5 expert suggestions for stocks and shares to hold in your ISA! appeared first on The Motley Fool UK.

More reading

• Could this cheap FTSE 100 stock be the next Rolls-Royce?
• Hesitant over a Stocks and Shares ISA? Here’s a way to deal with scary markets
• Standard Life’s announced a £2bn deal but its share price is largely unchanged. Why?
• Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll
• Young investors are taking the stock market on a rollercoaster ride. Here’s how retirees can buckle up