Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

This Apple Inc. (NASDAQ:AAPL) Bear Was Absolutely Right

Page 1 of 2

OK, Jeff Gundlach. You were right. Absolutely right.

The bond guru has maintained bearish sentiment on Apple Inc. (NASDAQ:AAPL) for the better part of a year. Last May at the Ira Sohn Conference in New York, Gundlach went as far as to recommend shorting Apple Inc. (NASDAQ:AAPL) while going long natural gas, a trade that he said had “monster legs.” Let’s look at the price of United States Natural Gas Fund, LP (NYSEMKT:UNG) compared to the Mac maker to see how “monster” this trade turned out.

Apple Inc. (NASDAQ:AAPL)

AAPL Chart

AAPL data by YCharts.

Over the next four months, Apple Inc. (NASDAQ:AAPL) would continue rallying and top out at $705, nearly 30% higher than when Gundlach recommended shorting it, while natural gas was up less than 10%. Following Apple’s peak, shares have cratered and are now down 22% from his initial call, although natural gas has given up most of its gains as well and is now only up 2.6%. Not so sure I would call that “monster,” even though his prediction that Apple would eventually fall has come to fruition.

In November, Gundlach appeared on CNBC at a time when Apple Inc. (NASDAQ:AAPL) was trading near $550. The fund manager then expressed his belief that Apple has lost its main product innovator and that it would soon try to pass off “tooty-fruity” iPad colors as innovative. His crystal ball told him that Apple would soon hit $425, which was $125 below prices at the time and represented a market cap loss of nearly $120 billion. I panned Gundlach at the time, saying his price target was absurd since it would put Apple’s P/E firmly into single-digit territory of 9.6 (or 6.7 excluding cash), and that Apple’s cash would comprise 30% of its value.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!