Could domain names be used to predict a recession? That is the question posed by a newly launched index that uses domain names to shed light on the economy in much the way stocks and shares do.
The domain name pricing index, or IDNX, the first of its kind, was created by economist Dr. Thies Lindenthal and tracks assets such as consumer products, homes and truck loads, reports Fox Business.
IDNX takes data from SEDO, the world’s largest marketplace for domain names, and is updated with new information on a monthly basis.
Dr. Lindenthal found that the domain index provides a virtual replica of other economic indicators like the NASDAQ.
“Domain markets are not a cloud-cuckoo-land where dreamers trade esoteric goods at imaginary prices,” Lindenthal was quoted as saying. “The strong correlation shows that domain name buyers and sellers make economically motivated price decisions.”