NFTs are 'for momentum investors on large doses of steroids': bond king Jeffrey Gundlach
Bond King and astute art collector Jeffrey Gundlach says the ultra-hot NFT [non-fungible tokens] market is something he won't be dabbling in.
"That's certainly not for me, that's for momentum investors on large doses of steroids," the DoubleLine founder told Yahoo Finance in an interview at his California estate which is adorned with celebrated works of real, tangible art. "I like buying quality. I never really loved junkie stuff."
The NFT market — dominated by people scooping up various "collectible" digital art or collectables - has gone haywire since celebrated artist Beeple sold a piece for $69 million in March 2021.
The surging space has recently attracted the likes of struggling video-game retailer GameStop (which is creating an NFT marketplace) to NFL great Tom Brady (who has debuted an autograph NFT platform). Defiance has also begun to drop NFT ETFs as a means to give investors exposure if they are so inclined to play the momentum.
Explains Gundlach, "I believe when it comes to art, just like when it comes to real estate, you should really buy the highest quality so they can appreciate very steadily, like real estate appreciates. I haven't seen one NFT thing that I thought was interesting."
Another thing you won't see Gundlach investing in is China.
DoubleLine doesn't invest in the country given Gundlach's views on the country's policies, among other factors.
"China is uninvestible, in my opinion, at this point," Gundlach said. "I've never invested in China long or short. Why is that? I don't trust the data. I don't trust the relationship between the United States and China anymore. I think that investments in China could be confiscated. I think there's a risk of that."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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