Natural gas the next gold, says Gundlach

Natural gas the next gold, says Gundlach
Bond guru expects prices to go on prolonged rally
MAY 17, 2012
By  John Goff
Investing in natural gas today is similar to buying gold in 1997, before a surge in the precious metal's price, according to Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP. Gundlach, whose Los Angeles-based firm runs mutual funds with $25 billion of assets, said on a conference call this week that he's adding gas-related holdings to the DoubleLine Multi-Asset Growth Fund. His remarks were reported by the Business Insider and Pragmatic Capitalist blogs. A recording was unavailable yesterday pending a compliance review, according to Talkpoint.com, which hosted the call. The fund had no more that 4.5 percent of assets in gas and other energy-related commodities as of March 31, according to data posted on the DoubleLine website. Hugoton Royalty Trust and San Juan Basin Royalty Trust, which own stakes in oil and gas properties, were among its holdings. Natural gas fell below $2 per million British thermal units this month on the Nymex for the first time in a decade. Production increases from U.S. shale formations contributed to the decline. For the year, gas has lost 35 percent. As 1997 ended, spot gold traded at its lowest price since 1979. The precious metal retreated 21 percent for the year and posted losses in each of the next three years. Since then, the price has risen sixfold, aided by an 11-year winning streak.

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.