With stock market becoming volatile, is domain name industry right time to invest?

[srisri24]

With stock market becoming volatile, is domain name industry right time to invest?

The amount of money i invested in stock market one year ago lost more than 30% of value.

I think domain industry is good place to place our investments. what do you guys think?

 

[bmugford]

If you know what you are doing, the domain market can easily outperform even a booming stock market.

Brad

 

[interestedenough]

It is high risk. Although, I believe that if done well, one might be able to mitigate the risks. If you had a portfolio that didn't cost you much to acquire, and if you can have it pay for itself (parking, etc) then you can mitigate at least maintainance costs. I'm interested in what others think.

 

[Weber]

At least with stock you will get an offer.

 

[johname]

Its very possible to be bad at both so dont cash in the IRA lol

 

[bmugford]

Stocks have a limited upside, where domains don't.

But domains also have a higher downside as they can be worth $0.

With domains at least you have the option of creating your own dividends (parking, development, lead gen, etc).

Brad

 

[BookWorm]

A limited upside? There are plenty of day traders that make a killing working with the stock market. Just like there are plenty of people who make a living developing websites, or work online.

 

[Ms Domainer]

*

It's a good time to buy.

Just snagged a ccc.com (Letter-Letter-Number) for very low $1xx.

*

 

[interestedenough]

With domains, you can dedicate a bit of time developing and sort of control their future. If you try to do that to a stock, you get the SEC spanking and jail time.

 

[bmugford]

A limited upside? There are plenty of day traders that make a killing working with the stock market. Just like there are plenty of people who make a living developing websites, or work online.

A limited upside meaning there is a set price you can sell a stock for.
There are no "end users".

While stocks have more liquid value, they don't have the potential upside of domains.

You can easily buy a domain for under $100 and find an end user willing to pay $1000+ for it.

Brad

 

[DubDubDubDot]

We are talking about two different things here. You buy stocks and just wait to sell them. Domains don't sell themselves. Domains are a business that take work to get the value out of.

I would say absolutely put money into your business if it's working out for you. But to take a portion of your savings and put it into domain names and hope they go up in value? That probably won't pay off like buying into a down market will.

 

[winst]

If you bought Apple stocks, you are likely making money in the last couple of years.

Domaining is exactly the same thing. If you pick a good name, you are more likely to make money.

 

[mhdoc]

Keep in mind the difference in liquidity. You can sell a stock any time you want/need to. With a domain it may take a long time. So if you expect to need your money by a certain time the stocks will be safer.

 

[alien51]

With stock market becoming volatile, is domain name industry right time to invest?

I'm not sure what's the correlation between stock market volatility and "right time to invest" in domains.

Investment opportunities in domain names will always show up, no matter whether the stock market is up or down or volatile. They have no correlation or whatsoever.

But perhaps if the economy continues to go down, some people would want to give up their prized domains to raise cash to pay for their electricity bills and stuffs.

The amount of money i invested in stock market one year ago lost more than 30% of value.

A lot of people gained more than 100% in the stock market since last year. And to think that the US Stock Market has actually been in a 2-year bull run until now.

Domain Trading is not a liquid environment. You reg 8 dollars for a domain that you find out has no willing buyer for the next 5 years. Multiply that with all the garbage domains you have accumulated in your portfolio, you'll realize it's tough to peddle and sell domains.

But if you're buying domains to build e-commerce businesses for yourself, then that's a different issue.

I think domain industry is good place to place our investments. what do you guys think?

I think Losers outnumber Winners in the domaining industry, by a ratio of 10,000 losers for every 1 winner who makes a successful sale. Not counting the amount of money people spend to "highlight" their domains in auction places, and still get no buyers.