The stores are decorated, the lights are strung, and the holiday events have started.  Even though everything is shiny and cozy, it’s hard to ignore the tiny feeling that the holidays seem to be more expensive each year.  But you’re not alone; holidays are a financially stressful time for many.  This year, the National Retail Federation estimates holiday retail sales will grow 6-8% during November and December compared to 2021.  Online and non-store sales, which are part of the total, are estimated to increase between 10-12%, also up from last year.

If you’re looking for a way to enjoy the last few weeks of the year with less financial stress, consider making a few small changes to your holiday spending habits.

Make a Budget and Check it Twice
If you love giving gifts, there’s nothing better than making a list of everything you want to give your loved ones.  But as more and more fantastic ideas pile up, so do the expenses.  Before you start shopping, consider setting a holiday budget of how much, in total, you want to spend on gifts.  Remember that it often doesn’t matter how expensive the gift is, but the meaning behind it.

Handmade Holiday Hero
Speaking of effort, if a loved one always compliments your handiwork, they might love a gift that didn’t come off the shelf.  If you woodwork, knit, paint, bake, or even if you’re really good at crafts, don’t shy away from using your talents on presents.  You get to work on your skills, and the giftee gets something from the heart.  If the idea of knitting pot holders doesn’t excite you, consider some creative ideas like homemade limoncello, hand stitched tea towels, or custom bookmarks.  Just be mindful of the cost of supplies.

Cut Back on Expectations that Don’t Bring Joy
So many holiday traditions come from the socio-cultural norms ingrained in us growing up.  Cut back if a tradition isn’t meaningful to you or your family.  For example, if you hate sending holiday cards with the latest professional photo of your family and an oh-so-sweet letter with all the high points of the year, then don’t.  Send a thoughtful email and save the cost of the photographer and postage.

Now’s a good season to evaluate the cost of your holiday traditions.  If the cost of your end-of-year rituals is causing extra strain, consider changing them up for lower-cost alternatives like decorating cookies or a holiday movie night.

Save with Secret Santa
If you have a large extended family, see if you can get everyone on board with Secret Santa.  That way each person only needs to buy a gift for one other person.  This ensures that everyone receives a personal gift, but also means no one is scrambling to find something for every family member.  If organizing a gift exchange sounds like a big undertaking, consider using a tool like Elfster to share wish lists. 

Procrastination Doesn’t Pay
Last-minute gifts can be pricy, especially if first-class expedited shipping is needed to get them on time. Start shopping as early as possible and prioritize relatives across the country (or world) first.  And remember, if you’re procrastinating buying a gift because you can’t think of something “good enough”, consider a gift of experience.  Sometimes the best gifts aren’t material things at all.  (Bonus – no shipping!)

We know this time of year can bring a whole lot of emotions and pressure.  Navigating all the feelings and chaos is challenging enough as it is without added financial stress.   If you’re feeling the squeeze, remember your financial team is here to help come up with solutions for your everyday life.  Please feel free to give us a call.

Happy Giving,
Your Eagle Wealth Team        

Toys for Tots Box at Eagle Wealth

Eagle Wealth is participating in the Marine Toys for Tots program again and we need your help!  This national organization distributes toys to less fortunate children during the holiday season, spreading hope and joy to others. 
 
Thanks to your generosity last year, our Eagle Wealth community donated 150 toys to Central Oregon children in need.  The donation box is set up in our lobby and our team can’t wait to help fill it up.
 
We’ll match every toy donated, so please join us in the fun!  Drop by our office with a (new and unwrapped) toy.  We’ll collect gifts until December 21st.
 
Click here for more information about the program.
 
P.S.  If you live outside of Central Oregon you can still participate.  Let us know if you make a donation locally and we'll put another toy in the box.

The Week on Wall Street

Growing optimism that the Fed may be ready to ease future interest rate hikes sent stocks higher in a quiet trading week.

The Dow Jones Industrial Average gained 1.78%, while the Standard & Poor’s 500 added 1.53%. The Nasdaq Composite index improved 0.72% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.33%.^1,2,3

Stocks Slip

In light holiday-week trading, stocks rallied as investors grew more hopeful of a slowdown in a future rate hike. The release of the minutes from the early November meeting of the Federal Open Market Committee (FOMC) fed investors' optimism. Fed officials suggested such easing may be coming soon.

Investor sentiment was also lifted by unexpectedly strong retailer earnings, upside surprises in new economic data, and a better-than-expected consumer sentiment reading. Investors looked past the continuing Covid-related challenges that have stymied China's economic recovery and its attendant implications for global growth. 
 

Easing In The Offing?

The Fed meeting minutes, released before the Thanksgiving holiday, showed that most Fed officials felt a slowing in interest rate increases would be appropriate. The minutes also suggested that such a deceleration in rate hikes may begin with December's meeting with a 50 basis point hike rather than a fifth consecutive boost of 75 basis points.⁴

The primary reasons for slowing the pace of rate hikes were the growing risk that the Fed may increase rates beyond what was required to reduce inflation to its two percent target and signs that inflation pressures were easing.⁵