Joined Nov 11, 2007
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Wrong vs Early – Contrarians Bet on Natural Gas

via The Reformed Broker

Jeffrey Gundlach was buying gold with his own money in the early part of the aughts decade and he was “wrong” for five years. To hear him tell the story, he was happy to be wrong because it took him time to accumulate the position. And then when he became “right”, he became really right, all at once.

I bring this up because Gundlach is now talking about accumulating natural gas every now and again. He is emphatic about pointing out that he not buying in size or aggressively. Further, he is up front about the fact that he’ll be “wrong” for awhile before he is right.

I see the same thing in natural gas that he does – the historic discount of nat gas in relation to crude oil is an absurdity – an absurdity which can run on for a long time, but sooner or later God’ll strike it down. Yes, I was listening to Johnny Cash earlier today.

Read the rest here.

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