information Part 2 – How China’s Looming Debt Crisis Will Impact Domains

[Whizzbang]

Off the back of all of the China debt crisis, what’s going on in the domain industry? For the past year many western domain investors have been scratching their heads as they tried to work out why the Chinese were buying up all of the 4 letter/number domains. Read more...

Previous: Part 1
Next: Part 3

 

[frank-germany]

thank you Michael

now after reading it,
I know how China Debt Crisis is effecting domains

message short cut:
"you should have sold at peak level"

did I miss anything?

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“I will tell you my secret if you wish. It is this: I never buy at the bottom and I always sell too soon.” – Baron Rothschild

 

[frank-germany]

for some type of 4l.com the crisis actually wasn't that bad:

 

[Whizzbang]

Absolutely.....for some it's been really good.
I must admit that I cleared out a lot of my own 4 L .com domains a couple of months ago. I believe that the overall trend for this category of domains will trend down as the underpinning value supported by businesses just isn't there. The vast majority of domains are purchased with the hope that the purchaser can resell them for a higher number.....there's a limit to this business model.

What concerns me is the status of the Chinese economy and when debt will force a slowdown that will have worldwide ramifications. Likewise, I really wonder whether the US is out of trouble or whether the real state of affairs is hidden. Time will only tell.