“The first is end of year window dressing,” Jones writes. “While the stock is down 26% from its $705 peak in September it is still up almost 30% from the start of the year. While a portfolio manager will still need to believe that Apple’s shares will perform well, a number of them will want to show a large holding of it in their year-end shareholder reports.”
Jones writes, “The second reason for today’s move is that if tax gain selling had been occurring in the shares (and while hard if not impossible to measure) almost all of that pressure is over. So again if portfolio managers think that the stock will do well they are buyers today.”
Read more in the full article here.
Apple shares, S&P, NASDAQ rise on last day of 2012 as politicians bargain to avert fiscal cliff – December 31, 2012