Joe Biden meets Prince William in Boston


Patrick deHahn
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US President Joe Biden on Friday met the UK's Prince William in Boston, Massachusetts, where they discussed climate goals and mental health, the White House said.

Mr Biden made a brief trip to New England to attend a political fundraising event and met the prince during his three-day visit to the country, which will end with the announcement of the winners of his Earthshot Prize.

It was Prince William and his wife Kate's first overseas trip since the death of Queen Elizabeth II, whose funeral Mr Biden attended.

Caroline Kennedy, daughter of former US president John F Kennedy, showed the prince around the library before his meeting with Mr Biden on the premises. The Princess of Wales was visiting Harvard University's Centre on the Developing Child.

Mr Biden emphasised the strength of US-UK relations and expressed his condolences to King Charles III during his visit to London following the queen's death.

“He also conveyed the great admiration of the American people for the queen, whose dignity and constancy deepened the enduring friendship and special relationship between the United States and the United Kingdom,” the White House said in a statement at the time.

Mr Biden will take part in a phone bank and attend a reception for the Democratic Senatorial Campaign Committee before flying to Camp David for the weekend.

In Boston, Mr Biden is hoping to give a boost to the Democratic Party before the Georgia Senate run-off election on Tuesday, which will help decide who holds ultimate control of the 100-seat legislative chamber.

The Democrats currently have control of 50 seats, with Vice President Kamala Harris wielding the tiebreaking vote as head of the Senate. If Raphael Warnock retains his seat, it would mean Democrats no longer need to rely on Ms Harris's vote.

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What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

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Updated: December 02, 2022, 9:26 PM`