| The global downurn in economy will absolutely affect also the domain industry.
The economic activity worldwide has gone down the road, the demand for products and commodities goes down, whole economies are in the brick of bancruptcy.Liquidation of assets that's taking place and devaluation of many kind of assets worldwide will also include somehow and the domain industry. In internet alone, we should expect a downturn in online sales since the majority of population that use this media are western countries that are going to hit by economic collapse.
I would expect that valuations of domains will slide in the next 1-2 years since many people will cut spending (for real economic needs or just from fear of what is unfolding).
If the final outcome will be that too many people will see their standard of living go down instead of what we have learned for so many years, then really I can't expect that the industry will do well.
In this context, I would expect that someone with cash could find many opportunities in the near future. But for valuations alone, I bet that we would have to go down to earth since the ROI of any domain investment would have t be reconsidered under the new reality.As already explained above by others, earnings of online advertising will be hit anyway, so the income from parking and such
just my 2 cents |