After the uncertainty caused by the Omicron variant, some markets rebounded slightly as the situation settled down. However, we’re not out of the woods just yet, and many investors are unsure about what could be around the corner.
To give you some insight, I’m going to run you through some of the different companies seeing the most buying action on the Hargeaves Lansdown platform and share my thoughts on what could lay ahead.
[top_pitch]
What do we know about the current landscape for investors?
US treasury yields have been rising and dipping all over the place. When the treasury yields rise, this is historically not great for some stocks and shares. However, economic uncertainty is leading to a lot of changes and yo-yoing.
Everyone is trying to make bets on how the coronavirus pandemic, rising inflation and possible interest rate hikes are going to affect the equities markets.
All the question marks and unknowns have been adding to ongoing worries about China’s Evergrande meltdown. So, investors have been left with mixed feelings about what’s on the horizon for investment markets as we head towards Christmas.
What were the most bought shares in the UK last week?
Here are the most bought shares on the Hargreaves Lansdown platform last week:
| Position | Company |
| 1 | Scottish Mortgage Investment Trust (SMT) |
| 2 | Tesla (TSLA) |
| 3 | Genedrive (GDR) |
| 4 | iShares Core FTSE 100 UCITS ETF (ISF) |
| 5 | Boohoo Group (BOO) |
| 6 | Rolls Royce Holdings (RR) |
| 7 | International Consolidated Airlines Group (IAG) |
| 8 | Lloyds Banking Group (LLOY) |
| 9 | Argo Blockchain (ARB) |
| 10 | Apple (APPL) |
What does this tell us about UK investors?
Regardless of what’s going on in the wider world, Scottish Mortgage Investment Trust (SMT) is consistently a top choice for investors in the UK. But there may have been slightly more interest lately as the share price dipped.
The investment trust is heavily focused on tech and also has a number of Chinese companies within the top holdings. Seeing as anything to do with China or high-growth tech has taken a bit of a stumble, many investors might be using this as a good opportunity to load up on SMT shares whilst the price is subdued.
The rest of the top ten is a fairly eclectic selection. A number of companies on the list have had a tough time lately, and savvy UK investors playing the long game are following the adage of being greedy whilst others are fearful.
[middle_pitch]
Where might the markets head next?
Past performance doesn’t dictate future results, but Christmas time is historically a positive period for stocks and shares. So, I’ll be keeping my fingers and toes crossed for a Santa Claus Rally.
However, even if there isn’t a big rally before the end of 2021, I won’t be too worried. Many of the issues and uncertainties right now should get smoothed out over time. When you’re investing, it’s best to always have at least a five-year outlook. With that in mind, I doubt that in five years’ time we’ll still be asking questions about any of the current big headlines worries.
The immediate future will always be unsure, but the benefit of investing for the long term is that you don’t have to care so much about how the market performs over just one Christmas!
What else should investors know?
Whatever the market is doing, it’s usually worth trying to invest consistently and pound-cost average. There are always going to be highs and lows, so a steady amount going into shares or funds will balance your entry points over time.
Before buying shares, make sure you can afford to invest. This is especially true over Christmas. You may get out less than what you put in, so it’s always a good idea to have a long-term mindset.
When it comes to actually investing, making use of something like the Hargreaves Lansdown Stocks and Shares ISA can help protect your gains from tax. This type of account is a unique privilege we have here in the UK, so be sure to make the most of your allowance!
