Oil and illiquidity: The stocks to buy on weakness

Matthew Tillett from Allianz explains why he has been buying oil majors on weakness and taking advantage of illiquidity.

One popular argument in favour of the UK stock market is valuation which, on 14x p/e, is not stretched in absolute terms and attractive relative to the US.    This, however, disguises a wide range of valuations at the sector and individual stock level. Many perceived defensive ‘quality’ companies have had significant valuation re-ratings this year.   Meanwhile, any company facing headwinds has had its shares heavily de-rated, often unfairly so. This is where I am currently finding the most interesting contrarian investment ideas.   Unsustainable oil price   Usually...