The Beginnings of a Shrug or a Necklace?

So, I'm working on my 3rd knitting project. I love the feel of this alpaca yarn (soft!) and the color is gorgeous and bright. I'm almost done knitting 7-1/2 inches of the K2, P2 ribbing (120 stitches). Then I will proceed with the base of the vest/shrug and decreasing down to 60 stitches. DH saw me knitting away and thought this was a long necklace. LOL!
DH thought this was going to be a necklace. It's the beginnings of a vest/shrug


Here is a picture of what I'm knitting. This pattern is from Plymouth. I saw the actual knitted vest/shrug at my local yarn shop. I guess you knitters would call that LYS. See, I'm learning the lingo. The nice sales lady, Malika, let me try it on and I fell in love with the garment and the fit. She sure knows how to make a sale.
Plymouth N026 Vest/Shrug