Domain NamesDomain valuationEconomics

Called it: Sell stocks and bonds. Buy domains and websites!

By August 20, 2010 February 27th, 2017 13 Comments

During a brief visit to New York City, I had a chance to visit with a number of Epik partners and clients.  Power-Developer, Kenny Hartog, kindly opened up his home for a late night visit following DomainFest.  During a far-ranging discussion, Kenny asked me about stocks.   He was surprised to learn that I own no stock and no bonds in any public company.

Exactly one week ago, I posted in my blog that I detected an “inflection point” in the economic outlook. I further stated that the Double Dip in the US economy was already under way.   Looking at Thursday’s trading activity on the equity markets, I would say I got that one right — all 30 of the Dow Industrials were down.

The fundamental economic story is weak and getting weaker.  The available policy levers are not addressing the structural problem of unemployment in the Western economies. Beyond the troubling fundamentals, it is perhaps the technical story that is even more curious — something called the Hindenburg Omen.

To be clear, I am not categorically against stocks or bonds. In fact, I started trading equities when I was 12 years old.  However, from a market timing perspective, I find it difficult to make a case for why anyone would want to be long on public equities right now.

If your investment strategy requires you to continue to hold stocks, I recommend selling banks, insurance and consumer durables, and keeping energy, mining, consumer package goods, agriculture and telecom.  As for bonds, I don’t see how they go up materially from here.

So, with that, I offer my free and unsolicited advice: 

Sell stocks and bonds in August, and buy domains and websites in September!

Check out some of these confirmed low reserves for the September 16 live auction for income-producing websites:

Also, low reserves for developed premium sites that combine great domains with turn-key websites that are ready for entrepreneurial owners to take the businesses to a whole new level:

This is just a small sampling. There will be a total of 100 live auction assets, and 200 extended auction assets. Pre-bidding starts August 31, and the live event starts on September 16 at 1:30 pm PST.  More details at the Epik Developer Conference website.    Look for more news in the coming weeks as we gear up for this exciting event.

Join the discussion 13 Comments

  • The stock market of the last few years was brutal as numerous financials went BK, and many smallcaps plummeted 75% or more (I know of one smallcap which went from the high teens to about a dollar before bouncing back to about 40% of its former high). Seemingly cheap stocks became much cheaper as predictions of a second great depression seemed like a very real possibility. We have seen some recovery but many portfolios are still below 2006/2007 levels.

  • Louise says:

    It IS exciting, and those are nice domains with great websites! The first column is just the domain? And the 2nd includes the website? Does the buyer get the option of staying with the website for the first column? Look at it has a page 2 listing on Google, makes $$, and is cheaply priced at $750.00. The new owner would want to stick with Epik, IMO! 🙂

    • Rob Monster says:

      @Louise – yes the reserve prices are for sale of the domain with the hosted website. And yes, looks cheap — when it gets to page 1, will be money. See Now #1-3 on Google, consistently. Money. .net are fully development worthy. Oliver Hoger is buying as many as he can find.

  • cw says:

    As I remind my friends (some who continue to stick their heads in the sand) the Dow was at 10,000 ten years ago. Flat performance you say? Nope. Due to a 25% purchasing power decline these past 10 years, your little portfolio is equivalent to ~7,500 today.

    The buy and hold strategy for late baby boomers and gen x’ers has been disastrous – but you won’t hear the MSM talk about that.

    Rob and Epik are hitting the nail on the head. Invest in a domain name that generates revenue, has the potential to build traffic, capture customers, and satisfy a demand. It works and it’s liberating.

    Try it, you might get hooked.

    • Rob Monster says:

      @CW – Right on. The idea of “domains as asset class”, and holding a portfolio of cashflowing websites is a lot less risky than it was say 10 years ago. Now a retail investor can own income-generating sites passively, and now how the businesses are doing on a daily basis without having to wonder which way the stock market will be manipulated on any given day. I sleep better at night knowing that I am (more) in control of my own destiny. At least with a casino, you can calculate the probability of winning or losing. With HFT controlling the trade, the retail investor is just fresh meat.

  • Domain Sales says:

    You can wait years for a stock to go up 10 or 20 percent. Buy a simple domain name and flip it for 2 or 300 percent in a matter of hours or days, seems like a no brainer to me.

  • todaro says:

    you just wait. once the fed gets mortgage rates down to minus two percent you’ll be able to buy a home at any price and have it paid off in forty years without ever having made a payment. prices will skyrocket. we’ll all be rich again.

    • Rob Monster says:

      @Michael – Rates won’t go negative. The dollar will be debased instead. Negative interest rates in NOMINAL terms are a fantasy. In REAL terms, interest rates are ALREADY negative. Money market at 2% and inflation is above that, and potentially heading much higher. I would not touch residential real estate either but if you can finance at 4.5% for 30 years, that sure makes sense to me.

  • Just curious where one finds the traffic stats & earnings for the domains/websites being auctioned above?

  • Louise says:

    That’s fine, because I have all the hyphenated dot nets, and the double hyphens! Except 3D– – Moniker shows it taken.

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