Global stock markets lost $3 trillion in the two trading days after the results of the Brexit vote were revealed.
The referendum followed a massive sell-off in equities around the world, The Financial Times reported.
Market analysts noted that the falls on the first day after the vote were provoked mainly by sell-off in short positions because the majority of investors expected a Remain vote.
On the second day, investors revalued long-term assets and tried to sell potentially risky assets.
"The bottom line is that very few investors were positioned for the vote we got," Nicholas Colas, chief markets strategist at Convergex, told the newspaper.
The S&P Global Broad Market Index (BMI) fell nearly 6.9 percent, the worst two-day decline since the 2008 housing crisis and 12th worst on record, the article read. Moreover, the S&P 500 lost nearly $1 trillion. Developed markets lost a total of $2.8 trillion in the two post-Brexit days while emerging markets lost $179 billion.
"The momentous UK Brexit vote to leave the European Union has led to a spike in global financial market volatility and a flight to safety due largely to concerns about the durability of the European Union and the euro, and US stocks have suffered from the resulting 'risk-off' environment," Michael Reilly, chief investment officer for equities at TCW, was quoted as saying by The Financial Times.
Analysts and investors noted that due to instability it was hard to predict when the markets would rebound.
One of the main Brexit consequences for the market is that investors will get rid of risky assets and will flock to gold and other safe havens, Peter Oppenheimer, a Goldman Sachs analyst, told Forbes.
"Political instability is likely to remain and will affect the market. This uncertainty may undermine the weak recovering of the eurozone economy," Neil MacKinnon, a strategist at VTB Capital, was quoted as saying by RBK.
At the same time, Brexit has had limited impact on Russian markets.
"The intention of the UK to exit the European Union (Brexit) has so far had limited impact on Russian markets… As a result of Brexit, Russian financial markets are running the risk of stronger volatility," the Russian Central Bank’s Research and Forecasting Department said in a bulletin.