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