Market Commentary Highlights...

• Volatility in the markets may be higher not just in the near-term cyclical environment but on a longterm secular basis, as well.


• Over the past 30 years, long-term growth drivers that are now absent helped to lengthen and moderate the business cycle, including steady declines in interest rates, tax rates, and inflation. A potent driver of economic volatility in the years ahead may be the swings in fiscal and monetary policy. Investors must be well prepared to manage volatility and use it to their advantage in the years to come, since waiting it out is not an option.


• We believe thriving in volatile markets requires incorporating volatility themes into your portfolio, including: a focus on yield, utilizing volatility-thriving investments, and a tactical rebalancing approach.

Read the entire Market Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of July 19, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. This commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com