How will a US recession affect domaining?

[Pete]

I think one of the first things to go will be the current speculating on sub-par ascii domains, as they hold very little real value. It may put a damper on domaining in general, including IDN, but to a lesser extent as IDNs are still in their infancy and not yet overspeculated.

I wonder what people think about the propect of a recession on that topic.

P

[Rubber Duck]

I think it will have a positive effect.

Recession is not going to be disastrous for domains with strong type in traffic.

It will, however, get across the point that the US market is not the only one that matters by a long chalk.

This may encourage some of the less Jingoistic to contemplate diversification.

IDNs are a strong hedge against a weak dollar and a collapsing US economy.

[Pete]

In my experience, in times of economic setback people diversify in less speculative markets, not more. IDNs are still very speculative, even for us.

I think a short recession would weed out a most of the ascii nonsense; I do think it will benefit those still around in IDNs in the aftermath. Portefolios will be leaned out to their best items, ready for a new era of speculative investments.

For those that develop, it's a different matter though; I think they will be largely unaffected.

[bwhhisc]

I wonder what people think about the propect of a recession on that topic. P

Here's an article from a year and a half ago...still waiting
http://www.fdic.gov/bank/analytical/fyi/2006/032306fyi.html

Scenarios for the Next U.S. Recession, March 23, 2006

Notwithstanding a slowdown in the fourth quarter of 2005, U.S. economic activity has grown at a stable, robust pace for most of the last three years. Gross domestic product (GDP) grew at a real annualized rate of at least 3.3 percent in every quarter between March 2003 and September 2005 before sliding to a rate of 1.6 percent in the final quarter of last year. Meanwhile, FDIC-insured institutions turned in a fifth-consecutive year of record earnings in 2005, posting net income of $134.2 billion. In addition, today marks the 636th day since the FDIC last provided assistance to a failed or failing bank—the longest such streak in the history of the Corporation.

This string of positive reports on the U.S. economy and banking industry paradoxically has led some analysts to ask a somewhat pessimistic question: How long can these good times last? Experience teaches us that economic expansions do not last forever and that some types of economic disruptions can be associated with financial distress for banking organizations. While forecasting recessions is, at best, a hazardous business, it makes sense from a risk management perspective to explore various weak-economy scenarios to better prepare for adversity down the road.

[Rubber Duck]

I wouldn't worry about it too much.

US has never been a major market for IDNs, so the downside is distinctly limited.

It has never really been the target market, so what real impact can it all have?

If the US does emerge as a strong after-market for IDN, it is simply a bonus.


In my experience, in times of economic setback people diversify in less speculative markets, not more. IDNs are still very speculative, even for us.

I think a short recession would weed out a most of the ascii nonsense; I do think it will benefit those still around in IDNs in the aftermath. Portefolios will be leaned out to their best items, ready for a new era of speculative investments.

For those that develop, it's a different matter though; I think they will be largely unaffected.

[touchring]

A recession will affect all kinds of investments.