The most popular US stocks for UK traders in 2021 so far

Which shares are seeing a lot of interest right now? Here’s a rundown of the most popular US stocks being traded by UK investors in 2021.

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Investing is always an interesting myriad of different themes and situations. By looking at the most popular US stocks, we can get a useful insight into how some investors are thinking.

Let’s take a look at the most popular American shares so far this year and see how the landscape has changed compared to last year.

[top_pitch]

What is the US stock market doing right now?

Things have been relatively subdued of late. There have been some small corrections taking place in the US market, especially around high-growth tech stocks.

But this has perhaps been overdue following the relentless climb of share prices throughout most of the last twelve months.

There has been a lot of talk about how inflation could impact the markets and this has investors a little wary. So share prices have seen a fair bit of sideways movement. They’ve not really dropped too much, but they’ve not gained significant ground either.

What US stocks are UK traders buying?

New data from Stake shows the most-traded US companies so far this year. Let’s take a look at the top five US companies that traders in the UK are investing in.

1. Tesla

Unsurprisingly, Tesla is the most popular American company with both traders in the UK and global investors. The share price has seen a lot of volatility of late, moving much more than the general market. These swings can provide good opportunities to make money for both buyers and sellers.

2. Churchill Capital IV

This is an interesting one to make this list. You may not have heard of this company. That’s because it is a SPAC and doesn’t actually have commercial operations. This shell company went public last autumn and has drawn a lot of attention this year due to news of a possible merger with Lucid Motors, a promising electric vehicle (EV) startup.

3. GameStop

There’s no surprise that GameStop has a high ranking. It is one of the most talked-about and traded US stocks. There has been a lot of controversy and drama surrounding the whole GameStop saga, but at the core of it all has been lots of buying and selling of their shares.

4. Nio

The only potential competition to Tesla and Elon Musk’s stranglehold on the EV market has been Nio. As a result, this Chinese company has been a popular one for some traders hoping that it’s the next big thing. Others think the company is overhyped. These conflicting views have led to a lot of volatility, which makes it an interesting stock for traders.

5. ReneSola

This is actually a Chinese stock but it’s are listed on a US exchange. It’s a green transformation energy business that’s had a crazy start to the year. The company’s share price sky-rocketed in January, but it’s been heading mostly downwards since.

[middle_pitch]

How do these compare to popular US stocks from 2020?

It’s always interesting to look back and see how things were different a year ago.

Tesla and Nio both made the top five most popular shares of 2020 and have remained popular for investors. Other companies being heavily traded last year included:

  • Zoom
  • Amazon
  • Apple

Zoom was obviously one of the hottest stocks of 2020. Amazon and Apple have been standouts for years but both had a particularly strong twelve months throughout the coronavirus pandemic.

It is interesting to see that in both years, technology companies have been catching the eyes of traders. However, what is potentially more curious is the fact that the inclusions this year are more on the speculative side of investing. The most popular stocks in 2021 have been quite volatile, rather than being consistently well-performing businesses.

What’s next for US stocks in the rest of 2021?

Investing can be unpredictable at times, especially for people trading rather than investing for the long term.

It’s possible to benefit from short-term volatility, but this can be risky. Often, it’s better to use a share dealing account to invest in shares without a high price tag and a solid history of making money.

The most popular US stocks so far this year are a bit of an unusual bunch. You might be able to find better long-term opportunities outside the businesses that are currently stealing the limelight.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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