Market Commentary Highlights...

• While the current deal making in Washington may alleviate the problem of having “run out of debt capacity”, the government will soon “run out of money” if another deal is not reached by the end of next month to avoid a shutdown.

• This serves as a reminder that the markets are going to have to deal with ongoing fiscal fights for the foreseeable future.

• Nevertheless, stocks may post a modest relief rally on the debt ceiling agreement averting sharp spending cuts and a potential default. The backdrop for the market outside of Washington has been improving with further evidence coming to light last week.

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 August 3, 2011. 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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