The Dow Jones Industrial Average’s 416-point tumble pushed nearly all Arizona stocks down during Tuesday trading.
“It’s pretty clearly in response to what happened in China overnight, which is a correction that I think most people have been expecting for some time,” said Stephen Barnes, portfolio manager at Valley-based Barnes Investment Advisory. “The Shanghai index was up 175 percent over the last year, so it would be past time for that market to take a breather and back off a little bit.”
Joe Blankenship, an account manager at Source Capital Group in Scottsdale, said Arizona stocks reacted predictably to the Dow’s steep drop. He tracks Arizona stocks.
“There’s a couple that are pretty much flat where they didn’t go down, but everything else is down between 3 percent and 6 percent,” he said.
Amkor Technology, Syntax-Brillian Corp., Kulicke & Soffa Industries and OrthoLogic Corp. were among Arizona stocks that closed down more than 6 percent Tuesday.
“I’ve felt since the beginning of the year the market was a little overpriced and that we were due for a correction, so we may still see a little bit more of this,” Blankenship said. Both Blankenship and Barnes agree there’s no reason for investors to be concerned and/or take action.
“I’d look for a small continuation of this, but a month from now we probably won’t know that this happened,” Blankenship said. The steep drop in China suggests it may be a good time for investors to buy into that market, Barnes said.
“To the extent that brings other markets down that haven’t had nearly the run that the Chinese market has had, I think that suggests there’s some buying opportunities here in the United States as well,” he said.