Early pressure in Apple, as Jeff Gundlach of Doubleline Capital said last month, was all about capital gains. AAPL returned loads of on-paper profits in 2012; given the uncertainty surrounding capital gains taxes for 2013, people took profits.
While it's never a bad idea to take profits, taxes probably shouldn't dictate too many long-term investment strategies.
As this early selloff took place, the media hype started. Of course, the selling intensified. At this point, it turns into chaos. A circus. And you can't blame rational investors, people who can clearly see Apple's dominance, a blowout holiday quarter coming and no real competition in the distance, for taking profits.
This might be all a lesson in absurdity, but, for better or worse, it makes the stock tank. You would be nuts to not take at least some AAPL profits off the table. And so it goes, a vicious cycle until something happens in Washington and then, until Apple reports earnings for the iHoliday shopping season in January.Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.
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