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"It's like investing in gold in 1997," says bond man Jeff Gundlach of his favorite investing...
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Tuesday, April 17, 2012, 5:18 PM ET"It's like investing in gold in 1997," says bond man Jeff Gundlach of his favorite investing idea - natural gas - which DoubleLine is accumulating in one of its funds. On the question of QE3, he says we're already doing it - it's called Operation Twist - and when it's over he expects equities to struggle. Stock valuation in general right now? The PE on major indices should be in the single digits. Q&A here. Blog here.
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It is like asking Warren Buffet if you should have bought gold or not in 2000. He usually tells people not to buy gold, no matter where it has been!
I have a NG ETF right now that I have lost little more than 8000$ on. I have continued to buy on the way down.
Don't know if I'm plain stoopid or what. Intellectually I don't know why NG is so undervalued yet none of us can take commercial advantage of this commodity that would save us money in Transportation,Heating and Electricity? I don't care that there is a glut of the product...why don't I have the means to use it?...ie. no infrastructure. I'm talking common sense here....
CHK also is a major player but they are in turmoil right now; wait and see. Or look for a ETF or fund.b
LNG is an outstanding play. They'll buy gas at $2, sell the LNG for $14 (2012 dollars). That's a fairly decent spread in my book. I own it too.
Another sound strategy is to buy independent oil & gas producers who are making big bucks on black gold while sitting on their gas, awaiting better economics. SD, CRZO, CXO and the MLP's-SDT, PER, PBT, etc.
Lot of opportunity out there. Do your homework.