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"It's like investing in gold in 1997," says bond man Jeff Gundlach of his favorite investing...

"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.
Comments (12)
  • The_Hammer
    , contributor
    Comments (3809) | Send Message
     
    This is one smart guy.....listened to the presentation and was impressed with his honesty. Not the same ole shill.
    17 Apr 2012, 06:24 PM Reply Like
  • yumy87
    , contributor
    Comments (209) | Send Message
     
    Brilliant guy for sure. Not sure of his expertise in equities. He is a superstar only in bond markets, right?

     

    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!
    17 Apr 2012, 07:17 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1428) | Send Message
     
    I held gold from about 1997 to 2001 when i went through a divorce and had to sell my holding.
    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....
    18 Apr 2012, 09:50 AM Reply Like
  • gilgi
    , contributor
    Comments (18) | Send Message
     
    About 20% of the cars in Argentina use natural gas specially in Buenos Aires where all the Taxis use it. There is a kit to make you car use ng that sells for about 1,000.00 dollars...we need a company to star selling it here.
    18 Apr 2012, 10:45 AM Reply Like
  • Guille
    , contributor
    Comments (8) | Send Message
     
    I cant believe that the NG will be a good business in EEUU for used in cars, but yes for used in big industry, like Generator Electricuty Thermal.
    18 Apr 2012, 04:55 PM Reply Like
  • stormin4909
    , contributor
    Comment (1) | Send Message
     
    Coal my Friend, Buy Coal
    18 Apr 2012, 06:14 PM Reply Like
  • kebonk
    , contributor
    Comments (3) | Send Message
     
    What’s the best way to play Natural Gas for the long term? I looked into futures and I didn’t see any way to play for the long run.
    26 Apr 2012, 01:21 PM Reply Like
  • raifel
    , contributor
    Comments (95) | Send Message
     
    Buy companies that own gas, like LNG, DVN, or will export gas:CQP.
    CHK also is a major player but they are in turmoil right now; wait and see. Or look for a ETF or fund.b
    26 Apr 2012, 01:47 PM Reply Like
  • medzjohn
    , contributor
    Comments (221) | Send Message
     
    I'd say NG displaces coal for power generation, mainly for environmental attributes but also on cost. Just can't say when we'll see higher NG prices. Remember: "Market can stay irrational longer than you can stay solvent."
    26 Apr 2012, 01:40 PM Reply Like
  • auto44
    , contributor
    Comments (2973) | Send Message
     
    kebonk Buy companies that have it. xom, cvx, chk, eca, xco and on and on. You have to be aware that nat gas is big all over the world and not just here. Here prices are rock bottom and I believe nowhere to go but up.
    26 Apr 2012, 01:41 PM Reply Like
  • Jack Hutchison
    , contributor
    Comments (336) | Send Message
     
    Best not to play the NG ETFs that dabble in futures, and get poisoned by contango. Buy solid stocks with high growth prospects, especially those paying dividends. CPQ, TGP, the fertilizer MLP's come to mind. I own them all.

     

    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.
    26 Apr 2012, 02:03 PM Reply Like
  • jhf999
    , contributor
    Comments (6) | Send Message
     
    SDT PER & PBT are royalty trusts not MLPs. Do your homework.
    28 Apr 2012, 01:31 PM Reply Like
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