The U.K.’s vote to leave the European Union was a costly decision in more ways than one.
Between Friday and Monday, worldwide markets hemorrhaged more than $3 trillion in paper wealth, according to data from S&P Global, the worst ever recorded. For context, the amount shed by markets over the last two trading sessions far eclipses the turbulent trading losses of the 2008 financial crisis, according to S&P analyst Howard Silverblatt.
Approximately $1.3 trillion of that came from U.S. markets alone, Silverblatt noted. On Monday, the Dow Jones Industrial Average tumbled by more than 260 points, which fared better than the London Stock Exchange, where the FTSE 250 plunged by nearly 7 percent. The British pound has suffered worst of all, with the currency swooning, ending the session at a 31-year low.
Julian Jessop, an analyst at Capital Economics, said despite the increased volatility “it would be wrong to conclude that the world is on the cusp of another global financial crisis. Indeed, even sterling’s slump against the dollar is less dramatic when seen in its proper context,” he said, adding that the currency was fairly valued on a trade-weighted basis.