Morning folks!
I heard a very good description of where we are economically the other day.
Jack Welch, the former CEO of General Electric said that we are in a fog. As far
as business is concerned there is zero visibility. What that means is conditions
are so bad companies can not even plan or project 30-60 days out. They are on
day to day and that is just one of the reasons why the economy is so bad and
getting worse.
Then add the layoffs and what that does to the morale of a company and how
that down draft has the power to destroy that company. Reorganization takes time
and opportunities are missed.
You may ask why am I writing about the economy more than domains? It is a
simple answer. If you have the most beautiful suite on the Titanic and the ship
is going down and you are busy redecorating, you are in serious trouble. You
have the wrong focus. You also need to read yesterday's post as well as previous ones. There is a thread and theme that runs throughout.
I also like being on record. I am willing to stick it out and believe what
I say and think. Does not mean I always get it right. But time and the record
have proved more often than not. My posts about what is HERE now started 1-2
years ago and just kept intensifying. The reason, the numbers just did not add
up and it was just a matter of time before numbers trumped the bullshit. People lie, numbers don't.
Last week I wrote about the lack of confidence and how that is the
epicenter. Well, now there is much more confidence. More confidence that things
are going to get much worse. That is the only thing I can see any confidence in.
How you handle these troubled waters is going to determine many years of
your life from this point forward. So it has nothing to do with your cabin and
everything to do with the ship. If you have $10 million and hyper inflation
comes (And we are certainly planting the seeds for that to happen) you are
broke. So things can change quickly and drastically. Things can truly spiral out
of control. This is no drill. This is the real thing. We are witnessing an
economic disaster so much bigger than 1929 that I don't have a calculator that
will even go that high. The good thing is that it is worldwide. The bad thing is
that it is worldwide. Riots, unrest and governments falling has the power to
overshadow the economics at some point. War becomes inevitable.
Right now we are in a deflationary phase. When something is deflated you
try and inflate it. The here and now is deflation, but you can't be blind to the
other side. We are getting both, just don't know the timing. What's important is
being AHEAD of whatever happens. One step ahead and things are fine, one step
behind and your world can come crashing down. It's tough to make money. It's
even harder to keep it.
A lot of things are going to happen in the next 90 days. The next 60 could
be the worst we have seen until this point. Tax time is getting closer and
unless you are in Congress, we all need to pay that tax and that is where the
first true test and bottleneck happens. That is going to determine where we go
from there. Likely some minor relief followed by the very darkest days we have
ever faced.
That's what I see coming. Cover your eyes and hide or be proactive. I have
been preparing for this for a very long time and I am still not ahead of it.
Nobody is really ahead of it. The quality of life as we know it is in jeopardy. The fallout has
yet to even materialize.
Cash is king, but income generating domains can become more valuable than
cash. The payouts will adjust to the market and inflation. They are down now
because of deflation. Accept it. Don't dwell on it. The market is working. The
reward for them will be most evident when that inflation comes.
Have a GREAT day!
Rick Schwartz
