“In risk assets, you make 80 percent of your money 20 percent of the time.“
Jeff Gundach said this during his conference call and presentation last night.
Basically, investors of risk assets should be prepared to take some volatility during the holding period.
Gundlach invoked this message right before he unveiled his controversial best investment idea: natural gas
DoubleLine is accumulating a position in the energy commodity.
“Natural gas is troubled for sure,” warned Gundlach. Surely, he won’t be surprised if the investment experiences volatility along the way. But if Gundlach follows his own advice, he’ll being expecting to make 80 percent of his return during 20 percent of the holding period.
He describes gas now as being like ‘investing in gold in 1997?.
Given natural gas’ cheapness, more and more big names have been talking it up, including Wilbur Ross.
Inevitably, they argue, the US will have to invest in its gas infrastructure, just because of how relatively cheap it is compared to oil.
Source: BusinessInsider
