Money | Seeing the future
Futures and Forwards
Futures and Forwards are contracts that relate to the price of commodities in the future. In the movie ‘Trading Places’ they refer to ‘frozen orange juice’ and make a fortune because they trade on what the future price might be. In that movie they think frozen orange juice will go up in price because of a government report; but the report of a forgery. Being able to predict the future can make you a lot of money but ‘insider’ information relating to futures markets or stock markets is illegal.
There has been some speculation about what shares in Facebook are really worth. The speculation has suggested that Facebook could be worth as much as $100 billion. The profits of the well known social networking site don’t suggest it’s worth this much; but what of future profits? I have seen new advertising on my ‘news feed’ on Facebook and in the sidebar. This suggests that Facebook will carry much more advertising in the future. It is also attracting older users in more countries so is set to expand in a number of ways. If we compare it to Qzone in China we can also see what it might do in the future, it could add more pages like Qzone; a music page and a blogging page perhaps? This makes the future value of Facebook, that much more and people are willing to invest now and so the present value is adjusted to take into account future potential.
Many people have told me that I could put my blogs on my own hosted web space and use advertising to make money. I could also exploit the future potential of my blog. Advertising can now be country specific and I can see an advertisement on a blog in English and someone else reading the same page can see a different advertisement in French. The same blog can go out to 100 different countries with different advertising. The blogs aren’t yet that popular but people often read 30 different blogs each day and so there is the potential for 3,000 pages being read every day that all have different messages and advertising. The blogs could also be sponsored. This potentially could mean well over 100,000 advertisements a month could be added to my blogs! Even at a modest cost that would produce a lot of revenue and the value of the blog could be substantial and very attractive to an advertising company. This is looking at the future, at potential and evaluating what something will be worth in the future.
There is a lot of competition in blogging and everyone wants to make a name for themselves and make their blog a success. It isn’t that easy and adding advertising can make the blog look quite unprofessional. I don’t see the advertising on this blog because I’m ‘logged’ in when I read it. I hope it isn’t too intrusive! I won’t have any advertising when I host it myself. I want to build potential value in the blog and write blogs every day until I have a large collection. This is my 100th blog and I expect one day to be writing my 500th blog and I hope people will be reading over 100 of them every day. I don’t think anyone can be good at writing a blog; I try to be diverse and write on a number of subjects from Thrifty to Farmville! I also write some comedy and write from my own experiences. I find inspiration in life itself. I had an appointment come today for the hospital; that will give me inspiration, I always write something good after a hospital appointment! I have been short of inspiration this past week because I’ve had a cold; I still managed to write a blog every day. I was told I wander off the subject; I do, I admit it. I wandered off when I wrote about my cold and wrote about the previous evening’s lottery draw. I didn’t win, no, not a bloody sniff!
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