December is often a fun month for investors excited about the prospect of a ‘Santa Claus Rally’. Even with all the uncertainty around stocks and shares, there was plenty of investing action from UK investors.
Here’s a breakdown of the most popular stocks from the Saxo Markets platform last month, along with some investment insights to help you kick off 2022 in a positive way.
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What were the top global stocks for UK investors last month?
Taking a look at what other investors are buying is always useful for a better understanding of the current investing landscape. Here’s a rundown of the top choices on the Saxo Markets platform during December:
| Position | Company |
| 1 | Tesla (TSLA) |
| 2 | Apple (APPL) |
| 3 | GameStop (GME) |
| 4 | Alibaba (BABA) |
| 5 | Nio (NIO) |
Do these stock choices highlight anything useful for UK investors?
This is a fairly eclectic selection of stocks to end the year! Here’s a brief summary of each pick.
1. Tesla (TSLA)
This electric vehicle (EV) stock has been a constant favourite throughout last year, with plenty of ups and downs. Led by the enigmatic Elon Musk, Tesla has proved popular with both retail and institutional investors.
2. Apple (APPL)
A strong end to the year meant tech giant Apple became the first company with a $3 trillion valuation. It remains a solid choice for investors looking for sturdy growth stocks.
3. GameStop (GME)
It’s surprising to see GameStop (GME) here. The majority of the GameStop saga unfolded at the beginning of 2021. However, the shares have received a lot of press recently as GameStop ended up being the top-performing US stock of 2021. This is in spite of the share price steadily declining throughout December.
4. Alibaba (BABA)
Alibaba had a tough time following China’s big tech crackdown. But many investors consider this a good time to grab some shares while the price is somewhat subdued compared to previous highs.
5. Nio (NIO)
Another EV stock, that seems to be popular with investors who may be searching for ‘the next Tesla’. Lucid (LCID) and Rivian (RIVN) are two other popular choices from recent times. It seems that investors tend to rotate through these picks depending on the latest news and forecasts.
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What should UK investors look out for with stocks in 2022?
It looks as though rising interest rates are going to play a big part in the 2022 investing story. Many stocks and shares in the UK and the US have taken small hits lately with the confirmation of interest rates going up.
That being said, the US had plenty of overvalued stocks as the market moved towards the end of 2021. The UK, on the other hand, has plenty more options for those with value investing in mind. So, keeping an eye on shares at home could be a great shout for 2022.
Which sectors are looking good?
Hopefully, we will see coronavirus pandemic fears start to wane as we roll through the next few months. If this happens, it could mean good news for recovery stocks and shares. The travel sector could also see a boost as we head into spring and summer.
Energy stocks in the UK and abroad finished 2021 strongly. I expect powerful performances to continue, at least in the short term. There are still plenty of supply chain squeezes that are putting pressure on energy supplies, even though demand remains high.
Along with the energy sector, I think financial services is another area to keep an eye on. Higher interest rates, more credit card spending and borrowing, plus increasing wages could lead to a good spell for businesses in the financial services area.
What else do investors need to know?
Most of what happens in the markets this month and this year will be out of your control. But luckily for you, there are a couple of things that you can control.
The first is to make sure that you’re using a top-rated share dealing account with low fees that suits your personal investing style.
Second, it’s worth using an account such as the Saxo Markets Stocks and Shares ISA for buying stocks. And making the most of your allowance before the end of the tax year in April. Doing this will help boost your long-term returns by reducing your tax burden.
Just keep in mind that there are no guarantees with investing. So make sure you do plenty of research and remember that you may get out less than you put in. Keep your finances in good health and only invest what you can afford to lose.
