Your Money

While the math behind it may be hard to grasp, investors have often heard that rising interest rates are bad for fixed-income investments like bonds. There's an inverse relationship so that if rates go up, prices go down. The longer the bond's duration (a measure of term and coupon payments), the bigger the drop.

But have you heard of long-duration stocks?

A stock with a high P/E ratio (price per share / earnings per share) would be considered long duration. A stock with a P/E of 5 suggests today's price equates to five years of earnings, whereas a P/E ratio of 30 equates to 30 years of earnings. The 30 P/E stock would be considered longer duration than the 5.

Technology, venture capital, cryptocurrencies, innovation, and disruption are all long-duration strategies that performed very well as long-term interest rates fell. It seems unrealistic to expect the biggest beneficiaries of falling interest rates to outperform as interest rates rise...and there's no question that short-term interest rates are about to rise.

Aha! Interest rates do matter.
by Richard Bernstein Advisors

Your Life

With the pandemic taking center stage for the past two years, it is easy to forget about other health concerns plaguing the US…unless we are currently in the fight. For the most part, heart disease remains the #1 leading cause of death in the US, closely followed by cancer—although, COVID-19 continues to take the top spots (even #1 in Sept). This article will give you a 50-year history and an update on our current fight against cancer. Here are some highlights. Survival rates are up, but the cost of treatment has skyrocketed. In 1971, new cancer diagnoses was around 650,000 compared to 1,806,590 in 2020. In 1971, there were 8 cancer drugs available and 641 in 2021. Government spending in 1971 was around $230M and is now $6.56B in 2021. We should definitely be proud of what has been accomplished, thus far, and continue the battle against this formidable enemy.

As the War on Cancer Turns 50, Earlier Diagnoses and Treatments Are Saving Lives
by Sari Harrar

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