… in fact, they might end up helping those who own them preserve or enhance their wealth.

Most people make the mistake of assuming that domains and stocks *have* to go down in value with every financial crisis but that’s just not true because it all depends on the nature of the crisis. If we’ll be dealing with an inflationary crisis as opposed to a deflationary one, the exact opposite will happen: assets will go up as a result of the crisis, not down.

After the Global Financial Crisis of 2007-2008, domain and stock prices went down.

This is because the crisis in question was deflationary.

In the investment world, it’s all a matter of confidence at the end of the day.

If people have confidence in currencies and consider them safe haven assets, cash will be king whenever times of turbulence appear.

That was the case after the 07-08 crisis. People lose confidence in assets and turned to cash as a safe haven.

But make no mistake, the desirability of currencies is also based on confidence, not just that of assets.

Therefore, should people eventually lose confidence in cash, what will they turn to as a safe haven? You’ve guessed it: assets.

Domains, real estate, stocks, precious metals and so on.

This is something that tends to happen during an inflationary crisis, so the opposite of the previous crisis, which was as mentioned previously deflationary.

If you don’t know all that much about deflation and inflation, I’ve explained each concept through a one-minute animation on my One Minute Economics YouTube channel: click here for the deflation video and here for the inflation one.

You’d think domainers would at least know the basics when it comes to economics but unfortunately, a lot of them don’t. If you aren’t armed with at least some basic economics-related knowledge, each and every financial crisis will catch you by surprise. Knowing your stuff when it comes to economics won’t help you predict the future, economists aren’t fortune tellers. It will however help you understand the world around you better, which would put you not one but multiple steps ahead of most domainers.