Categorized | Domaining Tips

What Domainers Should and Shouldn’t Be Doing Right Now

Posted on 12 March 2019 by Andrei

Right off the bat, I want to make it perfectly clear that what I’m about to write constitutes my personal opinion and nothing more. There are absolutely no guarantees that you’ll be rewarded by doing (or not doing) any of these things… think of this post as just me sharing the way I feel right about now.

Most of you probably know what the business cycle is all about and if not, the like I’ve just provided will help you understand in about one minute. The bottom line is that humans aren’t angels or robots and as such, the economy doesn’t really have the habit of going up in a continuous linear/predictable manner.

Sometimes, things are going good, so we become excessively optimistic.

The excesses we make when overly optimistic bring about market crashes, recessions and all that good stuff.

Once the dust settles, the economy can start going back up… rinse and repeat.

So, here we are in 2019 and if you haven’t realized it by now… it’s been a LOOOOOOOONG time since the last recession in most countries. We’re talking about record-breaking territory here.

As such, perhaps it would be wise to assume the proverbial party will come to an end sooner rather than later and at the very least implement a few mindset changes here and there.

I’ll start with the things I personally believe should be avoided at this point:

A) F**k the Joneses… or in other words, resist the temptation of buying a fancy car to impress your friends or anything along those lines. Now is the time to be humble, if not fearful

B) on that note, don’t go overboard when it comes to personal spending and, instead, at least build a little buffer fund for yourself. If you were thinking about buying a home cinema, don’t. If your phone works just fine and you wanted to upgrade to a better model “just because” then, once again, don’t

C) take a close look at your portfolio, especially at the assets which have had a very good run… while it is true that the market can remain irrational longer than you can remain solvent, it might be a good idea to at least take some profits off the table

D) stay away from ultra-speculative domain investments for the time being and, generally speaking, be less exuberant. Don’t get me wrong, go for it if you’re presented with an absolute bargain, just be careful and perhaps a little bit “tighter” than usual

… alright, so what should you be doing?

A) don’t be afraid to hold on to cash… money, dinero, Geld. While cash is a terrible long-term investment due to inflation, you need to understand that should a collapse take place, those with liquidity at their disposal will be able to take advantage of life-altering purchase opportunities, so there are periods when being long cash makes sense 😉

B) become more willing to invest in assets through which one can “hedge” against uncertainty… in other words, assets that tend to perform well during an economic downturn, I believe the risk/reward ratio associated with being a little bit of a contrarian at this point can work in your favor

C) be more willing to say yes to offers on your domains… this doesn’t mean selling your best assets for pennies on the dollar, not by a long shot, but it does mean it might be a good time to be a bit less rigid than usual

D) there’s no time like the present to restructure a bulky domain portfolio. From bulk sales to simply dropping names, do whatever you can to eliminate liabilities

… I’ll put an end to this post here because I think you understood the message I tried to get across.

Can I guarantee the mother of all market crashes is coming?

No, I cannot.

I’m simply explaining why I believe that at this point in time, it might be wise to consider this possibility more than you have in the past.

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