Market Commentary Highlights...

• In one week, President Obama is due to submit his budget. The 2013 budget is already going to have the biggest impact since the end of WWII, even if no action is taken in Washington.

• The fiscal headwind under current policy totals over $500 billion, or 3.5% of GDP. The United States has never experienced a deficit cut by more than 2% of GDP that did not end in a sharp decline in GDP.

• The risk that a budget deal to mitigate this potential impact does not happen should keep markets from moving steadily higher in 2012, as they have done year-to-date, without a reality check.

View the entire Market Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of February 7, 2012. 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 here.

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