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Whenever we start a new year, it’s always useful to look back at the previous year for some insight. Of course, past performance doesn’t dictate future results, but there are definitely lessons we can learn and apply to the present. This is certainly true for stocks and shares!

So, I’m going to break down some of the best- and worst-performing US stocks of 2021 and provide you with some investing tips to carry with you over the next 12 months.

What were the five best-performing US stocks of 2021?

According to research from Investopedia, using data from the Russell 1000 index, these were the five US stocks with the best-performing share prices in 2021:

Position	Company	2021 return
1	GameStop (GME)	815%
2	Upstart Holdings (UPST)	321.1%
3	Moderna (MRNA)	193.6%
4	Devon Energy (DVN)	175.3%
5	Continental Resources (CLR)	167.1%

And the 5 worst-performing US stocks of 2021?

Here are the stocks that had a particularly bad 2021 and will be hoping for a better 2022:

Position	Company	2021 Return
1	StoneCo (STNE)	-81.83%
2	C3.ai (AI)	-78.56%
3	Paysafe (PSFE)	-77.62%
4	GoHealth (GOCO)	-74.89%
5	Peloton Interactive (PTON)	-71.3%

Are there trends in the best-performing stocks?

Not much more can be said about the whole GameStop (GME) saga, and I don’t want to give the stock any more airtime. Although it posted the highest returns, it was one of the weirdest things to ever happen in the stock market. The only lesson you can take from its success is to expect the unexpected!

Overall, Moderna (MRNA) had another great year as vaccines played a big part in 2021. I expect vaccines to still play a role in 2022 but not on the same scale, which could mean lower returns. But who knows what the coronavirus pandemic will throw at us next?

Devon Energy (DVN) and Continental Resources (CLR) are both in the oil and natural gas sector. It’s an area that has seen huge price explosions for customers in the US and the UK in the past year. These issues don’t seem to be resolved, meaning low supply and high demand could lead to another good year for stocks like these.

What about the worst stocks?

It’s interesting to see that four out of the five worst stocks are all tech-related, albeit within different sectors. Tech did pretty well across the board in 2020. Then 2021 saw investors start to shy away from the highly valued, speculative picks.

The only non-tech stock, Peloton (PTON), suffered from a consumer trend reversal. Home gym equipment was highly popular during worldwide lockdowns. But, as normal life has resumed, and people are spending more time outside, Peloton (PTON) investors have been hit with a reality check.

So during 2021, it’s a good idea to stay alert and be cautious with anything that could be considered a ‘trendy’ investment. But still keep an eye on wider macro trends and large economic patterns around industries such as energy, finance and consumer goods.

How can you invest to make the most of stock gains?

For every great stock pick, there’s an equivalent stinker. It’s extremely difficult to predict how companies will fare throughout the year because the best and worst performances can be due to unexpected events.

However, one way you can make sure you’re exposed to the best performers is by using a top-rated share dealing account to invest in an index fund. For example, if you had invested in a broad US index fund like the S&P 500 or Russell 1000 in 2021, you would have seen returns of 26.9% and 20.5% respectively.

Granted, that’s a lot less than the 800+% returns posted by GameStop, but it’s really important to understand how much of an anomaly that event was.

There are also risks to passive investing like this. An index fund exposes you to the top performers, but it also exposes you to the worst stocks in the index. This is why the overall performance of an index can pale in comparison to the best shares it holds.

Make sure you have realistic expectations for 2022 and remember that you may get out less than you put into the market. So try and keep a long-term mindset and do plenty of research before jumping into an investment.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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Though not as common as it was a decade ago, car theft still remains a significant problem in the UK. Indeed, new figures show that a car is reported stolen every 11 minutes. But which cars are most prone to theft? A new list comprising the most stolen cars in the last year has been released.

Read on to find out if your car model is on the list and some steps you can take to protect yourself from the personal and financial stress that comes with having your car stolen.

Which are the most stolen cars in the UK?

Analysis of DVLA data by car leasing comparison website LeaseLoco shows that 43,603 cars were reported stolen by the police to the DVLA up to 30 November 2021.

According to experts, the total number of thefts in 2021 could exceed the 46,876 recorded in 2020, but it is unlikely to exceed the 58,642 recorded in 2019, prior to the pandemic.

So, which vehicle was the most frequently targeted car by thieves in 2021?

Topping the list is the Ford Fiesta Zetec. The stats show that a total of 418 Fiesta Zetecs were stolen in 2021.

This is not entirely surprising given that the Ford Fiesta is the best-selling car in the UK. It implies that there are more of them on the market for criminals to prey on. In fact, Ford Fiesta models accounted for seven of the top ten most stolen vehicles in the UK in 2021.

Other models that make up the top 10 include the Range Rover Sport HSE SDV6 and the BMW 520D M Sport.

Here is the full list of the top 10 most stolen cars in 2021.

Rank	Car model	Number stolen
1	Ford Fiesta Zetec	418
2	Ford Fiesta Titanium Turbo	351
3	Range Rover Sport HSE SDV6	315
4	Ford Fiesta Titanium X	311
5	Ford Fiesta ST-2 Turbo	300
6	Ford Fiesta ST-3 Turbo	272
7	Ford Fiesta Titanium	241
8	Ford Fiesta Zetec Turbo	204
9	Range Rover Sport HSE Dynamic SDV6	174
10	BMW 520D M Sport	131

How can you protect your car from theft?

Commenting on this data, LeaseLoco chief executive, John Wilmot, said that just because these cars are on the list should not be a reason not to buy them. The most important thing is to take the right precautions to avoid becoming a victim of car theft.

He advises that motorists always make sure their vehicles are locked when walking away from them, and overnight. He also recommends that car owners upgrade their car security by installing an alarm, immobiliser and tracking system. A steering wheel lock can also add an extra layer of security in addition to acting as an effective visual deterrent.

Willmot’s other recommendations for keeping your vehicle safe are:

• Storing your keys in a safe place and away from open places, including near windows and doors

• Never leaving your car running with the keys in the ignition (a common issue on cold mornings at this time of year)

• Using a signal-blocking key pouch to block radio signals if your car uses a keyless entry system

Is car theft covered by your car insurance?

Whether or not your car insurance covers theft will depend on your situation as well as the kind of car insurance policy that you have.

Typically, a fully comprehensive car insurance policy will cover theft. You are also likely to be covered if you have a third-party, fire and theft (TPFT) policy.

If you have a third-party only policy, you will not be covered for theft. This type of insurance policy only covers repairs to damage you might have caused to other people’s cars.

It is important to note that if your car is stolen and the insurer agrees to settle your claim, you will only receive the car’s current market value rather than the amount you paid for it.

Finally, keep in mind that even if you have a comprehensive or TPFT policy, your claim may be denied if your insurer believes you were not cautious enough.

To avoid this, take the precautions outlined above to keep your car safe. In addition to deterring theft, improving your car security can also help you save money on your car insurance.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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At The Motley Fool, we always love to hear from our readers. One reader got in touch last week to ask why the London Stock Exchange still quotes UK stock prices in hundreds or thousands of pence and not pounds.

I found this question very interesting, so I decided to look into why UK stock prices are quoted in this way. Read on to find out what I discovered.

How are UK stock prices quoted?

On the London Stock Exchange, UK stock prices are quoted in pence. You’ll see this price when you’re trading shares.

So, the price of a stock could be quoted as ‘GBX 520’. This means the stock costs £5.20. Similarly, if a stock is quoted as costing ‘GBX 1,190’, it will cost you £11.90 to buy one share.

The sums can split into smaller values than pence too. For example, it’s possible for the price of a stock to be ‘GBX 400.5’. This would cost you £4 and half a penny to buy one share.

What is GBX?

GBX represents a form of currency. While GBP refers to Great British pounds, GBX refers to 1/100th of a pound or one penny.

Why are UK stock prices quoted like this?

There is no official explanation from the London Stock Exchange on its reasoning behind quoting UK stock prices in this way. However, there are a number of plausible explanations.

The UK is one of the only major economies that quotes its share prices in this way. Other countries, like the US, use dollars and cents for quoting their stock prices.

It is thought that the LSE’s system has roots in the old days of the pound – pre-1971. This was before the GBP was decimalised and one pound was worth 20 shillings. Each shilling was worth 12 (old) pence. This meant one pound was worth 240 pence.

Stock exchange quotations need to be reduced to the lowest sub-unit of currency – in this case, pence. It was much clearer to say ‘470 pence’ than ‘one pound, 19 shillings and two pence’.

It could also be expressed as 1.958 pounds, but this would be even more confusing as it doesn’t really have any relation to the actual currency.

Given it’s been over 50 years since decimalisation, it would make sense to change the process now. However, no system is simple to change. It seems to have worked for the past 50 years, so there is little desire to change it to reflect the decimalised currency we have at the moment. 

Are there any other theories?

One theory is that most stocks are only worth a few pounds, so it makes sense to use a smaller currency unit. Some think it is easier to read a stock price as ‘102’, for example, rather than ‘£1.02’.

Many also believe that quoting UK stock prices in pence improves accuracy and reduces errors. Decimal points are easily missed out and people could find themselves buying £102 worth of shares rather than £1.02. This could clearly be an unfortunate – and costly – error!

Will the way stock prices are quoted ever change?

While some find this way of quoting UK stock prices frustrating, there doesn’t appear to be any clear movement to change it. However, it’s impossible to say that the practice will never change. It is more than possible we will see a change in the future, but it is not imminent.

For now, love it or loathe it, you will have to put up with UK stock prices being listed in pence rather than pounds.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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If you’ve often found your loyalty to a certain car insurance provider penalised at renewal time in form of a higher quote, then there may be some relief on the horizon. New rules from the Financial Conduct Authority (FCA) banning insurers from using your history to charge you more at renewal time have come into effect as of 1 January 2022.

While this is undoubtedly great news for loyal motorists, what does it mean for those who prefer to shop around for new deals every year? Is this the end of low-cost new switching deals? Let’s take a look.

What are the insurance rules?

In many other areas of life, loyalty usually pays. This has not been the case in the insurance industry, however.

Rather than being rewarded for staying with their current insurance provider, motorists who choose to remain loyal usually see their price ramped up on renewal each year. This is commonly known as the ‘loyalty penalty’.

In a nutshell, new customers are typically offered cheaper deals to entice them, while existing customers are forced to pay over the odds for sticking with their current provider.

Now, new rules that effectively end this practice are coming into effect. From 1 January, premiums offered to an existing policyholder must not be higher than those offered to an equivalent new customer for the same policy.

The new rules, which also apply to the home insurance market, are expected to save consumers an estimated £4.2 billion over the next 10 years.

What do the new car insurance rules mean for cheap switching deals?

The new rules basically mean that switching discounts may not be as common or as significant anymore. There could be fewer enticing introductory deals for new customers. Some experts believe that premiums will be rebalanced between new and existing customers. Prices could be slightly raised for new customers and lowered for existing customers to meet somewhere in the middle.

However, that does not mean that it’s not worth looking for a better and potentially cheaper car insurance deal elsewhere when renewal time comes around.

According to Sheldon Mills, the FCA’s executive director for consumers and competition, you can still shop around and negotiate for a better deal. You just won’t be forced to switch just to avoid being charged a loyalty premium.

Remember that differences in provider products and customer service quality are still good reasons to look around and consider a switch.

How can you lower your car insurance premiums?

There are steps you can take to make sure that you’re not paying over the odds for your car insurance.

1. Pay annually

If you pay your car insurance premiums monthly, you will ultimately end up paying more because of interest. If possible, consider making an annual lump sum payment to save on interest costs.

2. Consider telematics or black box insurance 

With telematics or black box insurance, your premiums are based on the way that you drive. If it’s proven that you are a safe driver, you could be rewarded with lower premiums. This is particularly relevant to young or new drivers.

3. Add a second low-risk driver to your policy

If you are a young or inexperienced driver, adding a more experienced driver to your policy may reduce your overall risk in the eyes of insurers. This could lower the premiums you are charged.

4. Tweak the job title on your car insurance policy

Your occupation is one of the key factors considered by insurers when calculating the cost of your premiums. A minor change could have a significant impact on the quote you receive.

There’s a tool on the Money Saving Expert website that you can use to find some legal job title alternatives that could potentially help lower your premiums.

However, don’t lie about your job role or select a role that is not directly related to your occupation. If you do this, you risk being charged with fraud and invalidating your insurance policy.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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UK house prices have been on the rise. In 2021 they grew by more than 10%, according to Halifax, which is the fastest rate of growth in 15 years. 

Will this high growth continue into 2022? Unlikely if you read UK Finance’s latest quarterly report into the state of the UK households’ personal finances. They say it is “inevitable” activity will be weaker this year. What are the warning signs for the housing market in 2022?

Consumer spending is increased

People are increasingly getting back to old spending habits, and with inflation rising they are using unsecured debt to fund this spending. There are still significant weaknesses in certain sections of the economy: while some are close to “pre-pandemic levels”, there are others that continue to struggle. This means household incomes remain vulnerable to shocks in the labour market.

Personal loans also on the increase

Although not back to pre-pandemic levels, personal loans have also been on the increase. UK Finance reckon that’s a sign that borrowers aren’t “yet sufficiency confident in the wider economic outlook or their own position to take on additional debt to fund bigger ticket purchases”. In this context, it’s unlikely that house prices will continue to grow at the levels we’ve seen previously since if consumers aren’t confident enough to take a personal loan then it’s unlikely they will be confident enough to commit to a bigger mortgage, which will limit demand and therefore house price growth.

Heavier mortgage arrears increasing and risk of repossessions looms

At the moment most people are coping with their monthly mortgage repayments, but the signs are that those who are struggling are continuing to sink deeper. The furlough scheme has protected people from unemployment but now that has come to the end, the big question mark is what will happen in the labour market in the early part of 2022. If unemployment rises, then it’s inevitable that the big rises in mortgage arrears will become a big rise in repossessions. That will increase the supply of houses available on the market, which will result in downward pressure, as banks look to recoup their losses.

These three factors show that there is a real vulnerability in the UK economy from a household perspective. There is a lack of resiliency to people’s finances, which means that increases in either inflation or interest rates could set off a tailspin.

There’s still a lot of money in overdrafts

To underline this reality, take a look at overdraft balances. Although the market has restructured over time, and overdraft balances feel at the start of the first lockdown, lots of people are still entrenched in their overdraft, with well over £4bn being lent to UK consumers via this facility. UK Finance observe that this is likely a sign that there is no “increasing household financial stress”, recognising there is an inbuilt level of vulnerability within household finances.

Inflation will bite in 2022

There are growing concerns that higher inflation will be around for longer and it will eat into income growth. Interest rates were increased in November, and although the official line from the Bank of England was ‘wait and see’, if the inflationary pressures that are expected flow through into prices early next year, we will see more interest rate rises. This means that not only will day-to-day expenditures be more costly for consumers, but mortgages will become more expensive. 

The reality is that higher interest rates affect affordability and increase risk to mortgage lenders. Therefore, the amount they’re willing to offer you on a mortgage is reduced. This means there’s less money available in the market for buying houses and therefore demand is reduced, which softens prices.

Homeowners have been leveraging equity to fund purchases

The evidence says more and more people have been using the equity built up in their homes to finance the purchase of larger properties. This is likely to have contributed to the boom in 2021, as people took advantage of the Stamp Duty holiday to buy bigger properties than they otherwise would have been able to afford.

House purchases fell sharply after the Stamp Duty holiday

The three-month rolling average of applications and completions collapsed following the end of the Stamp Duty holiday in June. The chances are people brought forward purchases into the first half of 2021 so it’s likely activity will end up being even weaker in 2022, further reducing the upward pressure on house prices.

What does it all mean?

It’s likely that the increases we’ve seen in 2021 were a one-off and will not continue into 2022. We know that inflation will materialise and therefore stretch household incomes that are already vulnerable. The real threat is the labour market, as there are a lot of people out there with high levels of mortgage arrears. All in all, 2022 could be a tough year for the UK housing market.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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