Economic Commentary Highlights...

• A busy week for economic data as the market may begin to judge effectiveness, and wisdom of quantitative easing.
• Budget battle begins, but it is not likely to end for a while.
• Economy appears to be accelerating, but at what speed?

View the entire economic commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of November 15, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above 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

Market Commentary Highlights...

The return of volatility to gold and emerging market stock prices has raised a question among some market participants: is the relentless climb pushing gold and emerging market stock prices into bubble territory? We do not think so. If they are bubbles they still have a long way to inflate before they burst, based on history.

While not in historical bubble territory, gold prices and emerging markets do have risks.

If gold and emerging market stocks continue to track the bubble pattern they have reached the
stage of the pattern where volatility picks up and sudden, sharp moves become more common as the bubbles inflate and risks build.

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 November 15, 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

Market Commentary Highlights...

While the major headlines are out of the way, what happens in Washington during the
remainder of the year will still hold influence over the markets.

The most important item facing Congress is the looming expiration of the Bush tax cuts. We expect an extension of the tax cuts (including the dividend tax cut) will be passed before the end of the year.

Last week’s performance may be a sign that investors may begin to migrate from high-yield bonds toward high dividend-paying stocks, possibly ending the U.S. equity buyers strike.

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 November 8, 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

Market Commentary Highlights...

The likely return to political balance between the parties in Washington may slow the pace of legislative change and result in the “gridlock” the market has historically favored.

Two reasons that the market may follow the historical pattern with gains in the coming year are the support that may come from extending the Bush tax cuts and the potential for stronger job growth.

The stock market seems to have priced in the return of gridlock and the GOP taking the House, but a surprise takeover of the Senate by the GOP could have further ramifications for some sectors.

While we believe the mid-term election outcome has the most significant longer-term market impact, the Fed meeting the day after the election holds major market-moving potential as the Fed has the potential to surprise or disappoint investors with the size and scope of the stimulus plan to be unveiled.

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 November 1, 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

Economic Commentary Highlights...

• Economics, policy, and politics will fight for room in the headlines this week, as the long awaited First Week in November finally unfolds.
• Some observers think QE2 will allow inflation expectations to become unhinged. In our view, the risk of deflation outweighs the risk of inflation by a wide margin.
• The third quarter GDP data argued against the so-called “double-dip” recession camp, as the modest gain in real GDP marked the fifth consecutive quarterly gain in GDP since the end of Q2 2009.

View the entire economic commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of November 1, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above 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