This is the question most domain investors are asking, or should be asking themselves. It doesn’t matter if your strategy is long or short term, price fluctuations affect us all, especially when they’re on the down side.
There are many people who have been voicing their opinions, from the Industry greats, to your average domainer in the forums, and all of them have one thing in common. None of them has a crystal ball! Not one of these commentators knows where the price of domains are headed. Sure they can speculate, study the price trends, discuss it amongst their peers, but not one of them can tell you where the market will go.
There has never been an economic situation like this and the impact it’s going to have on businesses and individuals could be truly shocking. I think by the middle of next year we’ll have a better idea of what’s going to be ahead of us and I don’t think the view will be too pretty.
I’ve read a lot of posts recently from fellow domainers who say that, “prices are at rock bottom, confidence has left the market, now is the time to go bargain hunting.” This is something I completely disagree with! Yes there has been trouble in the banks and Financial Markets, but the real economy is only JUST starting to feel the pinch. Take a look at the earnings reports coming out. Most companies outside the financial sector have reported pretty steady earnings up to this point, but I have a feeling the year end results will be a completely different picture and the earnings forecasts will make bleak reading indeed.
There will be layoffs, tax hikes to pay for the massive budget deficits that most western governments have burdened themselves with, and further drops in real estate prices. Then we have the heavily indebted consumer who has sadly run out of steam. None of these things seem like good news to me, so I’m not expecting a quick recovery in domain prices any time soon.
Sure some areas of the market will recover quicker than others and many of the fads that cropped up (LLLL.com) are likely to be the areas hardest hit.
So the point I’m trying to make is: “don’t believe the hype that you read.”
Many people would have you see the future through rose tinted spectacles, but don’t just take the advice of one Guru, look around and make your mind up slowly as to where you think things domains are headed.
Still there are plenty of bargains to be had now and I’m sure there’ll be many in the future. So if you happen to come across one of these snap it up and put it away for when the sun shines again.
Oh yes and keep buying my domains as they are only going to go up in value