A down market could be a good opportunity for domain buyers
If we see a prolonged bear stock market, it could be good for people looking to buy high quality domain names at better prices. People who have owned domain names for a long period of time might be more inclined to sell as the stock market goes down.
I have been doing quite a bit of outreach in an attempt to buy excellent keyword .com domain names. My efforts haven’t been fruitless, but it seems to be getting more difficult to buy great domain names at reasonable prices. Names that would have likely sold for $5-15,000 now seem to be priced at $25,000+.
For the most part, I have been passing at these opportunities because I don’t see end users paying more and more for the domain names, and it doesn’t make sense for my business model to buy a non-revenue generating domain name for $25,000 when I think it could be worth that or a bit more to an end user buyer. Perhaps a down market would shake the confidence of some of these domain holders, who may realize that they would rather have the cash (for safekeeping or later stock market investment) than have the domain name.
Obviously, a down stock market could cause problems for domain investors who own stock portfolios. I am sure there are domain investors who invested their domain name profits into the stock market, and they could be hurting with a down market. That said, I still believe there will be more buy-side opportunities, although I certainly don’t hope the stock market losses widen.
Likewise, there may be sale opportunities as stock market investors pull cash out of the market and invest in alternative assets like domain names.
As the market tumbles, there might be some good buying opportunities. Now might be a good time to reach out to domain owners to rekindle a discussion you previously had. Perhaps there are deals to be made in light of the tumult.
**Likewise, there may be sale opportunities as stock market investors pull cash out of the market and invest in alternative assets like domain names.**
An investor, already licking his (or her) wounds from stock market losses, will allocate funds to illiquid domain names – very, very doubtful. An investor will gravitate to cash or near cash (like US Treasury Bills).
Market has been so good for so long an investor might have been (profitably) stopped out of stocks. Even if they weren’t executed stop-loss orders, there are many investors who have lots of profit from the last few years who might sell stock to protect the remainder of their gains.
As for me I am buying more!!
Am a long time investor!!