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Moments ago, legendary fund manager Jeff Gundlach sent a warning to Apple shareholders during a public webcast.During the Q&A, one of the listeners asked if Gundlach could see Apple going to $700 per share.
“I don’t know,” answered Gundlach. “Maybe.”
But Gundlach followed that with a word of caution.
He noted high-flying stocks like Apple are at risk of capital gains taxes. In other words, those holding Apple stock are probably sitting on huge unrealized profits that will be taxed when shares are sold.
Generally, this brand of risk isn’t a very big concern.
However, Gundlach expects taxes to soon rise as part of the government’s efforts to reduce debts and deficits.
One of those taxes that could rise is the capital gains tax on investments. If the government announces an increase in the capital gains tax, then this could cause a mad rush to dump Apple shares in order to avoid that incremental tax cost.
This is just one of many reasons why Gundlach isn’t a fan of Apple.
At an event earlier this year, legendary fund manager Jeff Gundlach told a crowd of people that one of his “favourite generational shorts” was Apple. He warned that the “rainmaker was gone.” He also said he had a hard time seeing people lining up for iPad 482.
A month later in April, he even suggested shorting Apple while going long on natural gas.
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