Apple shares enjoyed a terrific Monday, obliterating all of their losses from the prior week. And that could not have taken famed investor Jeff Gundlach, of DoubleLine Capital, by surprise.
Gundlach has been bearish on Apple for some time now. As he noted, "I recommended against it in April, because of the basic viewpoint that it is somehow super-human, could do no wrong, and is going to take over the world." In other words, sentiment was so unbelievably overheated that Apple was due for a correction sooner or later.
But there were non-psychological reasons to get bearish as well. As Gundlach pointed out, this "super-human" belief came at the same time "some of their products, now that they're in their fifth generation, were showing only very incremental improvements." Worse, "the major product innovator isn't there anymore." Gundlach is of course talking about the late CEO of Apple, Steve Jobs.