If there’s one thing to say about this market, it’s that investors appear happy to leave the unloved sectors ¬alone. Take oil, for example. The oil price is currently at a level where most producers are making no money. But the oil price only needs to get back to the same levels seen earlier this year for a lot of oil and energy stocks to now look very attractive.
Dr. Suhas Nayak, Portfolio Manager at Allan Gray says it’s interesting to see that many Australian oil companies are priced even lower than they were during the 2015 oil-price crash. “And even in US dollar terms, they are as low as they were during the March sell-down of the Brent oil price when there were fears of oversupply.”
In this video, Suhas discusses the energy stocks he likes and why gold stock Newcrest and dividend-payer Alumina remain favourites in the portfolio.
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