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Commentary

Stocks Won't Just Bounce Back

Fear and uncertainty will mean continued bad news for the markets.

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When will the shock from the terrorist attacks subside to the point that investors feel comfortable putting money into stocks? Probably not anytime soon.

In the long run, of course, corporate earnings drive stock prices, and corporate earnings are bound to rise eventually. The U.S. is still the dominant global economic powerhouse, and that isn't going to change despite last week's attacks on our soil. Even so, I think fear and uncertainty are currently in control of the American psyche, and those emotions may continue to have a big effect on the equity markets.

Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.