Philip Palumbo and Doug Augenthaler on NFT excess

There are many signs of market excess, and this is one of them. A collection of 101 Bored Ape Yacht Club nonfungible tokens sold for over $24 million this week. 

Unbelievable! Maybe we are just too old to appreciate the value of NFT’s, but we also recall “scarce” $5 beanie babies reselling for thousands of dollars in the late 1990s. Needless to say, they no longer sell at such premiums. The similarity is that the late 1990s was also one of market excess, so excuse us if we are skeptical about the value of the apes. That’s right. $24 million for 101 digital pics of apes. If you’re confused, welcome to the club. 

~ Philip G. Palumbo, Doug Augenthaler, Palumbo Wealth Management, PWM Weekly Observations, September 11, 2021

(As reported in Barron's Market View.)