Happy Holidays
As the holidays rapidly approach, I would like to take a few moments to wish you a Merry Christmas, Happy Hanukkah, or any other Holiday you may be celebrating, as well as a joyous, healthy, and prosperous New Year. I appreciate your confidence and trust in me, and I am always here to assist you with any questions or concerns you might have about your investments. Please feel free to contact me by phone or email any time you would like to discuss your account or schedule an appointment.
As we continue to strive to get on with life, post pandemic, I thought the PNC Bank Christmas Price Index might be an entertaining way to close out 2021. The index is an annual tradition which shows the current cost for one set of each of the gifts given in the song "The Twelve Days of Christmas." It is similar to the U.S. Consumer Price Index, which measures the changing prices of goods and services like housing, food, clothing, transportation and more that reflect the spending habits of the average American.
The goods and services in the PNC Christmas Price Index® are far more whimsical, of course, and most years, the price changes closely mirror those in the U.S. Consumer Price Index. This year, the approach to PNC’s CPI considers the sociopolitical environment brought on by the pandemic by using the Index to provide an analysis of current market conditions, while including the impacts of COVID-19.
It’s a fun way to measure consumer spending and trends in the economy. So, even if Pipers Piping or Geese-a-Laying didn’t make your gift list this year, you can still learn a lot by checking out why their prices have increased or decreased over the years. With that said, the Total Christmas Price Index, which is the total cost of each gift in the song, comes to $41,205.58, which is a 5.7% increase from 2019. 2020 was excluded, due to the outsized effect the pandemic had on just about everything in that year. In 2019, the total cost of all the gifts in the song was $38,993.59 for comparison. If you would like to view the website where there are more details for the cost of each item, go to the url listed below: https://www.pnc.com/en/about-pnc/topics/pnc-christmas-price-index.html
In the last Consumer Price Index report by the US Bureau of Labor and Statistics, the price of all items rose by 0.8% in November and 6.8% over the last 12 months. Inflation is expected to continue to be above the Federal Reserve’s 2% goal for at least several more months, but with the continued decrease in purchases of treasury securities and mortgage-backed securities by the Fed in the months to come, this bout of inflation should settle down. Watch the yield on the 10-year bond to get an idea of where inflation is headed, after the Federal Open Market Committee (FOMC) concludes their meeting on December 15.
As in the past, you may receive a Client Account Update Form from my office in the mail sometime in 2022. This form is needed to update your contact and other required information. Please make any necessary adjustments on the form. If you are scheduled to receive one, it will be in a separate mailing, so please return it in the envelope which will be provided.
Rebalancing and the diversification of accounts is a continuing process which has been successful and very well received. If you wish to opt out of the rebalancing and diversification program, or if you need to provide updated information, please contact me by the telephone number or email address listed in the heading of this Holiday Greeting or by using our Contact Us form.
If you have any questions or concerns about your accounts, please don’t hesitate to get in touch with me. End of the year consolidated statements and the Winter Newsletter will be coming in January 2022. Referrals are always welcome!
John H. Kaighn
John H. Kaighn is Registered Representative, and an Investment Advisor Representative of Royal Alliance Associates, Inc. Securities and Investment Advisory Services are offered through Royal Alliance Associates, Inc. Member FINRA & SIPC. Jersey Benefits Group, Inc. and Jersey Benefits Advisors are independent of Royal Alliance Associates, Inc.
