“Short sell Apple? Wouldn’t that be the greatest short in the history of shorts?” Mitch Tuchman wonders for MarketWatch.
“t isn’t hard to find famous money managers buzzing about this idea. Jim Chanos, who made his fame shorting Enron and who is a huge China bear, tells Bloomberg TV ‘we’re getting afraid of heights’ in Apple stock,” Tuchman writes. “Jeff Gundlach, the bond guru at DoubleLine capital, started talking up short sell Apple earlier this year: ‘If I were one of these crazy hedge fund guys, with the slick haircuts and fancy shoes and racing stripe shirts, the trade I’d put on is 10-times-leveraged natural gas long versus 10-times short Apple.'”
Tuchman writes, “As passive investors, we would never encourage leverage or taking short positions on anything — or even taking part in active trading at all — but a simple examination of the Apple timeline tells a pretty interesting story… The problem for active money managers now is how to “guess right” something that is absolutely unguessable.”
Read more in the full article here.