Tips & Tidbits

J o h n G r a v l i n , C F P ® – F i n a n c i a l A d v i s o r T r a v i s G r a v l i n , F i n a n c i a l A d v i s o r

2 C i t y P l a c e D r . , S t e . 3 0 0

C r e v e C o e u r , M O 6 3 1 4 1 ( 3 1 4 ) 5 6 7 - 6 7 0 0 - o r - T o l l F r e e 1 - 8 8 8 - 5 6 7 - 5 8 1 0

w w w . j o h n g r a v l i n . w r f a . c o m johngravlin@wradvisors.com - tjgravlin01@wradvisors.com

Winter, 2017

Volume 13, Issue 1

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Fasten your seatbelts!!! I hope the holidays were as enjoyable for you as they were for me and my family. Politics did not come up until the third gathering and then only briefly. The dust has settled since the election and as my last newsletter cautioned, polls can be wrong, and they were.

Despite the markets usual fear of uncertainty, two things happened that calmed the financial markets. President-elect Trump gave a powerful, inclusive, conciliatory speech the morning after the election and the Republicans had a clean sweep winning the House and the Senate, as well. Suddenly, tax cuts and de-regulation, along with a quicker pace of interest rate increases, powered certain sectors of the markets higher. This continued, and even ac-celerated as certain appointments were made. Most of the market movement was based on speculation, and oftentimes reactive to tweets from the President-elect.

The Dow Jones Industrial Average (DJIA) passed 19,000 for the first time and appeared certain to hit 20,000 until the ascent slowed. As you can see from the chart on the back, that would have made it one of the quickest ascents, when measured in days, between milestones. The attention brought from the DJIA hitting these round numbers often attracts more buyers which continues to propel the market higher. Despite the optimistic growth oriented forecasts, caution is the prudent course as we enter the term of a new president, one with no political experience. Ronald Reagan was the last President-elect with no politi-cal experience and the market reacted as positively initially as it did this time. The DJIA enjoyed positive performance of approximately 9% between the election and Reagan’s in-auguration, but slipped approximately 20% in his first year.

At one point the DJIA reached a new record for 11 consecutive days, and has set 15 new highs since the election. It is tempting to jump on the train but please be aware that things may be getting ahead of themselves. We would all like to buy low and sell high but it is actually human nature to do just the opposite. If the DJIA has hit 15 new highs since the election, does it sound like you will be buying low?

Another Christmas has come and gone without finding my crystal ball under the tree. It sure would be easier to just know, but since we don’t we try to be cautious with your hold-ings in times like this. One quote I like at this time of the year is by Bill Keane, ”Yesterday’s the past, tomorrow’s the future, but today is a gift. That is why it is called the present.“ Treat each day as the gift that it is, and use part of your present to make tomorrow a better future for yourself.

HAPPY NEW YEAR; BEST WISHES in 2017!!!

Marian and I visit the Portland Head Light in Portland, Maine in Octo-ber. It is the most pho-tographed lighthouse in North America.

The DJIA is an unmanaged index that cannot be directly invested into. Past performance does not guarantee future results. (01/17)

Tips & Tidbits Volume 13, Issue 1

Page 2

“Tips & Tidbits”- Latest Edition

John Gravlin-Waddell & Reed

Two CityPlace Drive, Suite 300

Creve Coeur, MO 63141

What do you need to know about chip-card technology?

When you're checking out items at the store, should you insert your card into the payment terminal? These days, as the use of chip-card technology grows, the answer to that question is less clear. The computer chip now embedded in debit and credit cards uses EMV (Europay, MasterCard, and Visa) technology, which is meant to reduce fraud at physical retail stores (as opposed to online shops). But because businesses aren't required to upgrade their terminals, it's confusing to figure out what to do at the register. Here are answers to some questions you might have about chip cards.

How does it work? Magnetic strip cards contain information within the strip, so it's easy for a thief to "capture" that information and use it to accrue charges without the cardholder's knowledge. By contrast, the chip card generates a unique, specific code for each transaction that cannot be reused.

Why does it take longer to check out? The unique code generated by the chip for each transaction is sent to the bank by the payment terminal. The bank matches the code to an identical one-time code and sends it back as veri-fication for the transaction. As a result, it takes a few seconds longer to check out using a chip card because it takes time for the information to be transmit-ted.

Why aren't some terminals working yet? You might notice that terminals in some stores are equipped with a chip-card reader, but you're told you can't use it. These terminals are awaiting chip-card certification, which can take sev-eral months to process. Until their terminals are certified, retailers are responsi-ble for any fraudulent charges.

How much longer will I have to carry a physical card? The answer to this question isn't clear. However, it's important to note that terminals with up-graded chip-card technology are also equipped with technology that can ac-cept wireless near-field communication. This allows data to be exchanged be-tween two different devices (e.g., a cell phone and a terminal) that are a short distance away. This means that one day, instead of swiping or inserting a card at the checkout, you might just be tapping the terminal to make payments.

This article is written and provided by Broadridge Investor Communication Solutions, Inc. Copyright 2016, All Rights Reserved. Waddell & Reed and Broadridge Investor Communication Solutions are unaffiliated companies.

The Dow Jones Industri-

al Average & Milestones

First Date Days to Milestone Crossed Reach

19,000 11/22/2016 483

18,000 12/23/2014 120

17,000 7/03/2014 153

16,000 11/21/2013 139

15,000 5/07/2013 1,460

14,000 7/19/2007 59

13,000 4/25/2007 127

12,000 10/19/2006 1,879

11,000 5/03/1999 24

10,000 3/29/1999 246

9,000 4/06/1998 182

8,000 7/16/1997 105

7,000 2/13/1997 85

6,000 10/14/1996 226

5,000 11/21/1995 189

4,000 2/23/1995 975

3,000 4/17/1991 1,080

2,000 1/08/1987 3,573

1,000 11/14/1972 21,652

Source: WSJ Market Data Group

“Good resolutions are like babies crying in church. They should be carried out immediate-ly.”

― Charles M. Sheldon