The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen further today, losing 1% in lunchtime trading and compounding yesterday's losses following a heavy night for international equity markets.
Overnight, the Dow Jones and the tech-heavy NASDAQ indices both fell 1% while the FTSE 100 and DAX fell 0.9% and 1.6% respectively in Europe. It seems that the selling may be attributed to heightened expectations of an official interest rate hike from the US Federal Reserve when it meets next month.
The local bourse is hovering well below the 5,100-point mark early in the session. Indeed, the selloff has been widespread leaving few investors unscathed.
BHP Billiton Limited (ASX: BHP) has actually gained 0.3%, giving it a total loss of around 8% over the last three days, but it is the banks doing most of the damage today.
Westpac Banking Corp (ASX: WBC) has shed 1.5%, while National Australia Bank Ltd. (ASX: NAB) is down 1.6% and Commonwealth Bank of Australia (ASX: CBA) has lost 1.9%. Australia and New Zealand Banking Group (ASX: ANZ) lost 0.4%, wiping billions of dollars off their combined market values.
A number of other blue chips have also fallen, including Wesfarmers Ltd (ASX: WES), down 1.1% and Westfield Corp Ltd (ASX: WFD), down 2.5%.
With the vast majority of ASX 200 companies trading in the red today, it's likely that many investors will feel somewhat disheartened – especially after yesterday's selloff. While now could actually be an exceptional time to buy some of those beaten-down companies you've had your eye on for a while now, it's also important to ensure that you and your portfolio are both prepared for further volatility.
