Gold Gold Gold

Gold and silver go to electric vehicles as most traded stocks in 2021 in Saxo

Soren Otto 400x400
Søren Otto Simonsen

Senior Investment Editor

Summary:  2021 ended up being a very good year for global equities with markets up around 20%. It was a year, where the world economy roared as vaccinations were rolled out, the term Meme stocks was coined, and supply chains were stretched to the maximum. This meant heavy trading activity. In this article, we look at, which stocks were traded the most by Saxo Group's clients this year.


When a year draws to a close, it is time to look back and reflect on what happened. Per tradition here we look at, which stocks were traded the most by Saxo clients in a year that started with high volatility and a Reddit-fueled campaign, which saw retail activity spike in several of the heavily shorted stocks, such as GameStop and AMC. Many of these names continue to attract investor interest although some of the hype seems to have faded. Saxo Group’s analysts have continuously encouraged investors to be cautious and closely monitor risk when trading in these stocks with unprecedented high volatility.

While some equities have stood out both in terms of popularity and return, the year in general has been positive for equity markets, according to our Head of Equity Strategy, Peter Garnry: “This year ended up being a very good year for global equities with markets up around 20%. This year’s solid performance was driven by a strong rebound in earnings up 104% for the first nine months of 2021 compared to the same period last year,” he says.

From a macro perspective, the year turned out to have some key events, which drove the general financial performance: “As 2021 progressed several trends emerged. The global supply chains have been stretched and unable to deliver against an extraordinary demand from the developed economies. The consequences have been rising costs on goods and supply constraints on key industrial components such as semiconductors, which had a negative impact on car production. As a result of these supply constraint logistics, the commodity sector, and semiconductor stocks have done very well this year outperforming global equities.

Out of supply constraints and high demand, inflation emerged as something more broad-based and less transitory on which central banks kept insisting - with the FOMC (Federal Open Market Committee) meeting in December finally laying the ground for higher Fed Funds Rate in 2022 as inflation has become a key economic concern and risk to growth.

This meant that despite the overall good year, 2021 turned out to be tough for some of the winners from the year before: “The rising inflation outlook and expectations that interest rates might rise have caused many investors to evaluate their exposure to growth stocks, which are more sensitive to interest rates. As a result, last year’s winners such as green transformation, e-commerce, and bubble stocks have been among the worst performers this year. 2021 will also be remembered as the year when China likely faced its biggest challenges since the Great Financial Crisis, with a brewing housing crisis, technology crackdown to drive more “Common Prosperity”, and weakening domestic demand, which together have made Chinese equities underperforming the rest of the world. 

The flipside of China’s challenges has been a strong India emerging as one of the big winners coming out of the first phase of the pandemic with a strong equity market and earnings hitting a new record. As we approach 2022, the biggest question for investors will be how much interest rates will go up next year as it will dictate many of the trends next year,” says Garnry.

In-article picture_3

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.