Financial crisis, dollar value falling

[sOliver]

Do you think it is a bad time to invest into domains right now?

The financial crisis in the USA already lowered the value of some of my names. I bought a couple of quad premium LLLL (at an exchange rate of 1,50 €->$) and I plan to keep them for a year but I fear that the dollar might loose even more value.
On the other side.. now might be the BEST time to invest if you are an optimist. Of course the value of LLLL, especially quad premiums is rising fast but the situation might change, who knows. Not to mention that snowe bill T_T

Here's a link to a short article:
http://dollar.shorturl.info

 

[labrocca]

Domaining and the dollar aren't really all that related.

 

[.X.]

No reason to panic, I doubt the "snowe bill" will pass, the US economy will recover.

 

[DnFloorCEO]

If you think the dollar will lose even more value, then now is the best time to buy. Simply means that your tangible assets will go up in value, rather if you stayed in cash, that cash would be worth less.

And you can always sell in Euros if you wanted and then exchange them into $'s. But your domains won't be affected by the dollar that much since most domain transactions are in dollars, people might just offer more USD if the USD is worth less. It's just an added bonus for those who have Euros really.

$.02

 

[mhdoc]

I got sucked into a couple of the Gloom & Doom sites and noticed much of the talk was about moving from dollars and stocks into gold, oil, and other commodities. I finally realized that with a nice domain portfolio I had an investment that:

1. Will produce income while I hold it (parked or developed)
2. Can be sold in any currency I specify so not necessarily tied to the dollar
3. Is not leveraged so there is no debt service

Seems like a great investment in good times or bad.

 

[rick123]

its great at the monment out of the US, you can pick up domains so cheap these days

 

[Charley]

Domaining and the dollar aren't really all that related.

It is related.

It's a pleasent time for buyers outside the US to acquire great domains and even domain portfolios.

 

[italiandragon]

Currencies and economies are cyclic.....when the USA will have finished the work on printing notes and increasing their debt, we`ll hit the bottom.

But even if this will happen only in years, I can`t see how the dollar will fall faster than how fast some domains are increasing in value.

 

[richrf]

Dev-leveraging (as it is referred to) will affect all kinds of investments. Basically, as companies are forced to de-leverage (unload debt), there will be MUCH less capital available for speculative investments - including domains. It doesn't matter whether or not you think a domain is worth something, there will be less money available, across the board, for all kinds of speculative investments - housing, commodities, stocks, commercial real estate, domains, etc. No segment will be left untouched. I think truly valuable assets will hold up better, but you have to be clear on what is truly valuable and what was simply bid up during a by-gone era of carefree leveraging (30-1 debt loads), and what is up ahead which is a much different world. My advice - be very selective.

Rich

 

[goodkarmaco]

The liquidity the Fed is using to hand out money, bail out markets and prop up financial institutions is very bad for prices of almost everything. Inflation will be the next creature to appear.

How long? Soon.