Economy Starting to Show it's colors??

[Blake]

Well today I sent off 2 domain packages to BuyDomains for what I thought would be an easy sale and create some liquidity etc. Ted reponded saying thanks for sending but at present it doesn't fit there portfolio. So my question is simple is the economy finally showing it's colors even for Big companies such as buydomains?

I see a lot of threads on namepros for good quality names not getting bids even at rock bottom pricing etc. I think the tide is swinging towards a more conservative view on buying domains in bulk. I recently watched a live auction at snapnames and most names were passed up which i feel is due to the current strength or lack of in the economy etc.

I'm just looking for opinions because I've been seeing a lot of great names dropping as of late and feel that under normal circumstances these names wouldn't be let go and dropped out of someones portfolio. So is the time of registering a bunch of domains on pause for better times? Any advice about the future of the domain business? I'm very curious to hear from people who attended the 2k drop and what there take on the current events in particular are they still doing business as usual.

Thanks to all who reply this is not a doom and gloom post but a mere observation from a small time investor looking at the prospects of another crash etc.

I appreciate any and all feedback

 

[Seabass]

This is like the 2000 crash....meaning it's full of opportunities, but it is also fraught with landmines.

Landmines include :

Lower payouts, more UDRPs (even on generic domains), Google cutting out the long-tail (possibly), Yahoo getting bought by MSFT (will they shut down or promote domain parking?), if MSFT shuts down domain parking will big G slash payouts, will Google parking undermine domain parking companies, will domain parking companies consolidate and thus the options for parking be limited, if parking options are limited will they lower payouts (maybe some form of collusion of sorts), will domain prices increase and/or will the DOC keep ICANN in check, will registrars continue becoming more aggressive in trying to "steal" you domains, will gov't legislation get passed by the likes of influences like CADNA, or a rehashed version of the Snow Bill?

It keeps going on. Yes....there is opportunity but the navigation to profits and safety is trickier than ever now.

 

[Premiere]

The 2000 crash was created by massive overzealousness in the great world of the undiscovered web. Well, everyone seems to have discovered it now. Our current crash is more akin to the general downturn in the economy.

Honestly I am watching every auction and every tick, and what is dropping without bids is because domainers are realizing that to outlay the cash in a time like this makes it difficult to justify certain buys. Reality is, less are looking so more opportunities for the rest of us to grab fantastic bargains. Top-notch domains are still selling for glorious amounts of cash. Yes, less money than 6 months ago but what isn't selling for less nowadays?

If you want security - buy and hold diapers. If you want to buy and sell risky but intelligent assets, domains are still the place to be. We have yet to see a real growth spurt, so our little downblip here isn't like what real estate will continue to experience.

A good relative measure is that domains in real estate are dropping like flies, but domains in great depression, bank faults, discounts, coupons and scams are doing great. If you follow the economic conditions and overall trends, I don't see how you can falter. So it's all a matter of readjusting your portfolio, or waiting for financial conditions to match the property you already have.

 

[goodkarmaco]

if you own "foodbank", or "growvegetables", then you will do great in the future, lol.

Good luck, we are all going to go thru this together.

 

[DnFloorCEO]

FoodStamps.com baby

 

[copper]

A good relative measure is that domains in real estate are dropping like flies, but domains in great depression, bank faults, discounts, coupons and scams are doing great.

This is correct.
I am getting lots of inquiries about two domains on my sig. line.
But, seems like most are domain newbies as their offer is under $100
and I simply reply with "Not for sale" for those offers since I rarely
sold domains for ok prices when initial offer is under $100.

 

[htmlindex]

if you own "foodbank", or "growvegetables", then you will do great in the future, lol.

I do own Vegetabl.es, I guess I'm all set then

 

[saucey]

I've got GlobalEconomicMeltdown.com

Will that one work? :hehe:

 

[Charley]

I think this will happen all through 2009.

 

[goodkarmaco]

Yes,

I agree Charlie, 2009 will take everyone by surprise.

We will have what some economists say is the Obama bounce.

That is people are so hopeful for change that they will believe every lie coming down and even though we have no change as seen by the adoption of the same folly that pushed this economy over the edge people will think change is a for sure event.

This new incoming President does not stand for change, even though he carries a big sign that says change.

He is doing exactly the same things that are quickly wrecking any chance for a recovery. He has handpicked the same moron who is pushing the very banking system, every business to the brink. He is doing what Bush promoted, he is listening to Ben Bernenke and he is buying into the false hope of printing money to get us out of this downturn. Ben Bernenke who has not made one correct decision is President Obamas pick for the Fed head. Major mistake sir. We are doomed now.

This massive infusion of money promoted by Berneke and adopted now fully by Obama will completly destroy our dollars value.

Too bad, although we will see a temporary bounce, called the Obama bounce and those who think everything is getting back to normal will again buy into the markets.

Then the wrecking ball hits and inflation will roar thru the economic walls of Wall st and main st America. This inflation will be massive as in never seen before inflation.

The morons are printing money to the tune of two trillion dollars and who knows what the amount will be in the next few months as helicopter Ben is saying even two triillion is not enough. Thats two trillion dollars they do not have. Poof, money out of thin air. Inflation money, not money that is an asset, but money that will perc thru the economy and destroy it even further. I thought this new President was educated. I guess he knows squat about how prosperity is acheived.

Being warned will not be enough as the Obama bounce will seem like an enduring event. Don't loose sight of this massive infusion of money and the fact that we are only months away from commodity prices exploding. More panic and destruction is coming, way more.

Domainers will have to turn their attention to basics to survive this lunacy coming from government. Those who forget will be wiped out.

 

[Domagon]

IMHO, the markets will stay in a tight trading range for the next month or so; the government is making sure of that ... folks on the MarketWatch forums term it the PPT (Plunge Protection Team) - and they're doing a darn good job keeping it propped up.

On a related topic, commodity prices and inflation will likely remain low for quite awhile due to low money velocity. Seems counter-intuitive when one hears about all the massive government bailouts, but reason is that much of that money (upwards of $8 trillion) is just sitting. Only when a large amount of that money enters the broader economy, is when inflation will skyrocket - that's probably at least a year or more away.

Around Spring time, the markets will break out of the current range upward over the course of a few months - it will truly look and feel like a bull ... but "bull" as in BS will be all it really is...

Because just when it looks like the economy is "golden" and getting back to so-called "normal", the bottom will drop out!

I just spoke with a neighbor down the street from me who lost a bunch of money in the markets, but is keeping money in expectation of "recovery" soon. And many other people are thinking the same thing staying in; adding more money, such as via 401Ks.

Ponzi scheme comes to mind. I say that because many people aren't staying in based on fundamentals, but rather for the right time to cash out before others do.

Again, the fundamentals don't support "recovery" happening anytime soon. And many market gurus know it.

People are being taken for a ride - many large market players, such as hedge funds, have been in a "holding" pattern waiting for the right time to do some more big "dumps" as one saw back in the Fall.

The current markets are fantastic for "traders", but NOT for "buy and hold", since the "bear" is far from done ... sub-3000 DOW and sub-400 S&P are very realistic probabilities.

Ron

 

[Mark]

The 2000 crash was created by massive overzealousness in the great world of the undiscovered web. Well, everyone seems to have discovered it now.

Actually - I still think many people Have not discovered it yet There are still Plenty of Brick and Mortar businesses out there without a clue to what is happening online. Several people were discussing this on another forum recently and it's was outright funny reading some of the stories posted talking about Friends in Business who have just now decided to advertise via the web using domains/websites. Stuff like "Do me a favor and register RealEstate.com for me if it is available" - as well as other premiums long gone.

That being said - We're in for some tight times ... Advertising is our entire Industry and we haven't seen anything yet IMO as far as Companies closing and Bubbles bursting around the world. You can't throw enough money at the problems to prop up this mess that has been made. Securities / Hedge funds etc ... are all backed up by absolutely Nothing (Overpriced aging Real Estate). Commodities / Futures are only somewhat secure because People need food etc ... But then again , They'll need money to buy the stuff as well. Even certain metals and steel prices have dropped out of sight recently.

It will be an interesting future to say the least.


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Edit - Videos worth watching IMO : http://www.namepros.com/the-break-room/550731-the-ascent-of-money.html Just added a Google link as well for people outside the US.