“Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, said Thursday that the yield on the 10-year U.S. Treasury note could hit 3.10 percent by the end of the year,” Reuters reports. “Gundlach said the market will be in “nervous condition” once the Federal Reserve reduces its $85 billion in monthly bond purchases, and recommended that investors seek yield in mortgage real estate investment trusts and closed-end bond funds.”
“Gundlach, who said last year that he was shorting the stock of Apple Inc. at $610 and correctly predicted that the company’s stock price would fall to $425, said Thursday that the technology giant will have ‘problems’ when it starts trading around $530 a share,” Reuters reports. “Apple shares were percent at $494.69 on Thursday afternoon.”
Read more in the full article here.
Related articles:
The $60 Billion Man: Gundlach changes position on Apple – June 25, 2013
Gundlach: ‘We own Apple’ – May 24, 2013
Gundlach: Apple stock is ‘not expensive at all’ – May 10, 2013
Gundlach: Apple’s 40% plunge has singlehandedly debunked the efficient markets hypothesis – March 4, 2013
Bond guru Gundlach slaps $425 price target on Apple Inc. stock – November 9, 2012
If it weren’t so true, it would be funny that the fortunes of AAPL can be predicted by looking at number trends and external events, rather than how well the company is doing.
There is a disconnection between AAPL the stock and Apple the company.
Same as it ever was …
There certainly has been resistance at $505. Hopefully the 30+ million iPhones sold in the first day will boost AAPL.
Resistance for sure but nothing Apple can’t get thru ….
“Apple shares were percent at $494.69 on Thursday afternoon.”
Please, someone, explain what this means. Haven’t had my coffee yet.
It means that you’ve been reading a story from Reuters. They don’t know what it means either, but nobody at Reuters is smart enough to realise that cleverer people don’t understand it either.
A China Mobile announcement will trump any technical analysis.
It appears that Apple’s share price is already meeting resistance despite all the good news. Apple now is no different from last year despite the increased dividends, share repurchases and the bond issuance. No matter what Apple does it doesn’t seem to move better than any other tech stock and has performed terribly YTD when compared to the Dow’s climb. I know Apple will do better later this year, but how much better is still a question mark. I figured Apple would easily be able to hold $500, but I see that isn’t possible as long as Netflix, Priceline and Tesla are flying. The hedge funds must be robbing Peter to pay Paul.
Gundlach isn’t stupid, but please keep in mind that his comments are in perspective of a relatively short period of time. Catalysts such as strong sales of a Apple product update or especially the launch of an entirely new product category offering (insert rumor or speculation here), the launch or expansion of a new service (such as TV deals for the Apple TV), or major deals such as an announcement with China Mobile could easily knock “resistance” or the thoughts of Mr. Gundlach aside. That’s what I’m looking for.
That said, I’m a long-term investor. I intend to hold Apple for years, if not decades. For this reason, news like this means nothing to me, as the half-life of statements like Gundlach’s or any analyst can be measured in weeks, if not days. When you expect to hold shares of stock in a company like Apple for many years, all this is pretty irrelevant.
What matters is that with any investment, as long as the fundamentals behind a company stay on track, and if the company is moving forward, and not essentially changing for the worse (reporting losses after years of profitable quarters, laying off employees, bleeding cash and taking on tons of debt, or being saddled in a ton of debt as interest rates rise), what happens for day-to-day is just noise.
For those of us who hold Apple stock or any other investment, this is important to keep in mind. That way, you’ll never have to buy a roll of Tums or a bottle of Pepto Bismol.