More Stable than Stock Market — Domain Market
Industry may be facing tough times, but less volatile than stock market.
U.S. stock market investors had a wild ride this stretch. The Dow Jones Industrial Average shot up 286 points Monday following the rescue of Freddie Mac and Fannie Mae. Those gains were erased Tuesday as the market plunged 284 points. On Thursday the market rocketed up 169 points.
And that’s just one week.
Which is one more reason I’m glad much of my money is tied up in the domain name market rather than the stock market. Sure, I have a lot in the stock market and have lost lots of money this year. The U.S. markets are down 20% or so. Overseas markets are down 30%-70%.
But whereas the stock market seems to swing wildly each day, the domain market holds somewhat stable. The price of oil doesn’t make our domains drop in value overnight. A couple months ago if oil went up the stock market dropped since people thought high oil prices would slow the economy. Now if the price of oil drops the stock market drops since people think it’s a sign of a slow economy.
To be sure, if online advertising growth slows we can face some difficult times in the short run. But I have no doubt that online advertising will grow over the long run. If you’re a long term investor with a strong stomach, now might be a good time to get into the stock market. And it’s probably a good time for long term investors to be in the domain market, too.
