It's hasn't been a pleasant start to the 2016 calendar year for investors with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sinking for a second day.
After losing over 1% on Monday, the index has gone on to lose approximately 1.5% on Tuesday.
The falls on the ASX have come after an upbeat lead into the final days of trade for 2015 and have been caused by a sharp sell-off in Chinese equities which spread around the globe.
Overnight on Wall Street the S&P 500 and the Dow Jones both lost around 1.5%.
Amongst the majors, the biggest casualties on the ASX on Tuesday included a 2.7% drop in QBE Insurance Group Ltd (ASX: QBE), a 2.4% slump in Ramsay Health Care Limited (ASX: RHC) and a 1.7% decline in Woolworths Limited (ASX: WOW).
One of the few stocks to buck the trend was JB Hi-Fi Limited (ASX: JBH) which no doubt was finding some buying support after news broke that competitor Dick Smith Holdings Ltd (ASX: DSH) had been placed into voluntary administration.
As we head towards the all-important February reporting season which will provide an opportunity for investors to assess the interim or full year results for the majority of ASX-listed companies, now is a timely opportunity to review your portfolio.
For many investors their initial reaction may be to sell now to avoid the pain of any further paper losses – this is rarely the best strategy.
Rather, investors who remain focussed on owning a portfolio of shares which are trading below a conservative assessment of fair value is a proven strategy for long-term wealth accumulation.
Instead of worrying about the market's volatility, focusing on company specific matters is generally a better use of an investor's time.