Stox and Bondz

Why I’m in journalism and not real business, Point 2001: I do force myself to save some salary twice a month, once to IRA things and the second to more-immediately available accounts. I do mutual funds, no-load indexed jobs just like neutral experts advise: Money market, stocks and bonds. This is called diversifying, and is what rich people are said to do.

Lesson: Money markets have tiny but safe interest rates. When stocks go up, bonds generally go down.

To review: The money you make in stocks is cancelled by what you lose in bonds, and vice versa. And money markets are cancelled by inflation. You stay where you are.

To recap: When business is good, we all prosper, like the old saying, “A rising tide carries off your sandals at the beach.”

For instance, the Northwest Arkansas Times reported specifics on great news late last week. That movie theater by the mall in Fayetteville will open Sept. 28.On the same page, the paper reported in a photo caption (not posted online) that Sam’s Club will open in Fayetteville on Sept. 13. The great thing about the cinema is that it’ll have the latest technology on screen plus stadium seating, meaning you don’t have to call the usher about the tall dude in the Stetson in front of you because you’re higher than him. The city Sam’s will sell alcoholic beverages, an Arkansas first. This translates to real competition for standalone liquor stores. (The Missouri shops aren’t significantly cheaper; they profit by being next to dry Benton County.)

Like stocks and bond traders, though, somebody has to suffer. The weekend exodus of Washington County movie lovers to the two up-to-date Malco complexes in Rogers will cease. The Sam’s in Springdale will close. Or be rewarded: Benton County doesn’t have to worry about lefty cineastes running about, seducing young Republicans. And Springdale’s getting minor-league professional baseball, selling beer at games.

This then is a real-life lesson in double-entry bookkeeping. -30-