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Keep calm to deal with Brexit

The UK is leaving the EU, but right now, investors should sit on their hands and do nothing

Keep calm to deal with Brexit

So it's done. One day, not too far way, the United Kingdom will no longer be part of the European Union. It's early in the the day, but it's pretty clear that the financial markets will panic and drop sharply. The Pound is already collapsing and in India, we're sure to have a harried day on the stock markets.

So how should the Indian investor react? Should you start figuring out which companies will suffer and which if any will gain? Should you assume--as some are saying--that global growth will suffer? Should you assume that the direst predictions are true and that the EU itself will collapse and Europe will eventually collapse?

The truth is that unless you are an hour to hour punter, there is no basis for taking an panicked investments decision today. There never is. Investors always overreact initially and no longer term impact is clear on day one.

To use the famous British slogan at a most appropriate time, Keep Calm and Carry On.