Market Commentary Highlights...

In the first quarter, the markets were focused on a slowdown in China, in the second quarter the concern moved to a slowdown in Europe, and in the third quarter the growth scare has shifted to
the United States. In each of the prior quarters, markets made their low at the midpoint of the
quarter as a policy announcement turned the tide on investor sentiment.

It appears that the Fed missed the opportunity to turn sentiment around with their mid-quarter
policy announcement last week. Without a potent policy driver, the fear surrounding the U.S. outlook may not dissipate as quickly this quarter as it did during the first two quarters of the year and linger into the fourth quarter.

The mid-quarter policy driver during the fourth quarter may be the mid-term elections held in
November. This event may be potent enough to turn sentiment around and produce gains for the year in line with our forecast for modest single-digit gains.

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 August 16, 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