Earlier we got to see bond legend Jeff Gundlach speak at the New York Yacht Club.You can see his presentation here >
In his speech he presented his trade idea that he would pull if he were a 29-year old hedge fund manager wearing a garish pink shirt with thick grey stripes.
He writes: “If I were one of the nutty hedge fund guys, I would go short Apple, long natural gas, and leverage it 100x.”
This is pretty much the most contrarian trade imaginable.
Apple is loved by everyone, and natural gas is ultra-cheap.
He compares natural gas to buying gold in the late 90s, and says it’s a “no brainer” that in a world where oil is surging and we want to avoid Mideast dependence that eventually we will take advantage of cheap natural gas.
He knows we’re near a bottom there, because he finally heard someone say that gas is going to $0, a sure sign that we’re near a bottom.
As for Apple, he compares it to Google at its peak, and says that the company will have to start selling in other countries if it’s going to take off.