A lot more sellers than buyers - Page 3

snoop · 07-02-2008, 05:57 PM

Originally Posted by Reece

Back when LLLL.coms hit mid 50s for even the worst there were many newcomers suggesting they would hit $300-$500 within 1-2 years (bringing up some kind of 1/26th LLL.com rule which I'm not exactly sure how it got thought up).

I think this is a classic sign of an overheated market. When people start talking about really crazy gains like prices going up 10 fold, of even lll.com's reaching 10k within 6 months (which is what some were predicting here a couple of months ago) just on the basis of past performance. When many people feel certain about these gains even though they haven't happened and few are predicting a downside you can bet that is a market fueled by hype and close to fully priced. Another classic warning sign is when lots of people say certain investments never fall (because they haven't been in the market long enough to see them fall).
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In my view both the llll.com and lll.com market detached from reality when they kept on rising whilst the rest of the market fell, that was a very bad sign in my view.

Originally Posted by Reece

I still find it funny to this day that many people wouldn't consider buying an LLLL.com for $7, yet would later be happy to pay $50+ for that very same name being driven upwards solely by hype. I guess that's the way boom + bust markets work.

Right now everyone is saying oil will never go down in price.. Sounds like domainers 12 months ago questioning whether domains were immune to recessionary times. I have no clue where this herd mentality comes from, however we see it repeated over and over again throughout history.

It is herd mentality, new entrants especially get sucked in when the hear the prior gains. They wouldn't buy at $7 because the gains cannot be seen. It is like what they say about taxi drivers giving stock tips. When you have the moms and pops investing because of what they heard that is when the market is screwed. I believe we had alot of those kind of investors in both llll.com and lll.com.

Burano · 07-03-2008, 02:36 PM

Agreed...I stick to a pretty basic investing principle - don't buy what you don't understand. Anything that has overly complicated numbers behind it's growth or growth potential - I stay away from, like the lll's...those explanations are just covering up the fact that it's purely speculative. No substance behind it whatsoever.

Like stocks and good companies, I stick to names that I understand. I avoid the hype and I hold onto solid names through the downturns. If I can't understand how a certain domain can make money - chances are neither will an end-user.

domba · 07-03-2008, 03:35 PM

Originally Posted by raghav_romil

well everyone needs a lot more profit and the actual thing goes that companies are still not recognising how they could take their works or bussinesses online and globalised. and i have been sitting in this hope that the day comes soon. i am sure the number of companies in the whole world far exceeds the ones who are involved in domaining.

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07-03-2008, 02:36 PM	THREAD STARTER #52 (permalink)
Burano NamePros Regular Join Date: Jan 2008 Location: California Posts: 270	Agreed...I stick to a pretty basic investing principle - don't buy what you don't understand. Anything that has overly complicated numbers behind it's growth or growth potential - I stay away from, like the lll's...those explanations are just covering up the fact that it's purely speculative. No substance behind it whatsoever. Like stocks and good companies, I stick to names that I understand. I avoid the hype and I hold onto solid names through the downturns. If I can't understand how a certain domain can make money - chances are neither will an end-user. __________________ Need Hosting? 1st month FREE at Hostgator with this coupon code: SummerSavings994

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