The stock market is in danger of overreacting, meaning a dip next week could be warranted, UBS Managing Director and Head of Foreign Exchange Distribution, North America, Paul Richards said Tuesday.
"I think the market underestimated this situation back in September. We were so focused on the Fed, we forgot about Washington," he said. "We're in danger, in my opinion, of overreacting."
On CNBC's "Fast Money," Richards said that the federal shutdown, caused by Congress's failure to pass a funding bill, could continue through the weekend.
"Come Monday, you could have a brilliant buying opportunity for this market," adding that the S&P 500 would be a "buy" at 1,650.