Shares slammed as S&P/ASX 200 slides: Should investors be worried?

The S&P/ASX 200 (Index:^AXJO) (ASX:XJO) has extended its losses today with Westpac Banking Corp (ASX:WBC), National Australia Bank Ltd. (ASX:NAB) and Woolworths Limited (ASX:WOW) leading the way.

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The Australian sharemarket has been shaken violently this morning following on from a session to forget for international equity markets on Friday night. In what has been something of a broad sell-off, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has retreated 0.9% before noon and is hovering around the 5,824 level.

Given that the local market fell by a similar figure on Friday, investors may be fearing the sell-off is the start of something much bigger. Indeed, many of Australia's largest and most widely-held stocks are sitting at never-before-seen prices (often due to their compelling dividends) and could be set for a fall if the Reserve Bank chooses to leave interest rates on hold when it meets again in a fortnight.

As such, perhaps unsurprisingly it is the nation's Big Four banks that are doing most of the damage today. Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) are down 1.1% and 0.9% respectively, while Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) have retreated 0.8% each.

Elsewhere, Woolworths Limited (ASX: WOW) has extended its losses to be trading at a new two-year low at $28.22, while CSL Limited (ASX: CSL) is down 1.1% as well.

Control your emotions

Days like today can be quite disconcerting for investors – especially when the losses are so widespread whereby even the nation's most popular stocks are not safe. However, it is vital to get your emotions in check and not let them control your every move.

Volatility can be a short-term trader's enemy, but it can be a long-term investor's best friend. These times of heightened uncertainty can present excellent investment opportunities whereby other investors are selling their shares out of panic, giving you the prime opportunity to buy at a discounted price.

As a perfect example, Greencross Limited (ASX: GXL) has retreated a further 4% this morning with shares now selling for around $6.90, while Woolworths would also be an excellent pickup today.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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