Mark Mobius: Brexit fears are overdone

The shock from Britain's Brexit vote has rippled out to emerging markets. But investment guru Mark Mobius is staying calm.

Mark Mobius, executive chairman of Templeton Emerging Markets Group, says the UK's referendum result left "many investors surprised, including me". The referendum result has already led to "a post-Brexit hangover", not just for the UK but also for the rest of the world. While the impact on the FTSE and sterling made headlines, other markets were also affected by the shock result. "Emerging markets were not exempt, with the MSCI Emerging Markets index experiencing a sharp decline," he says.

However, Mobius thinks fears that a Brexit-induced UK recession could ripple out, hitting countries around the world, are overdone. After all, most emerging markets have "widely diversified" investment and trade links, and the amount of trade between the UK and the developing world is "relatively small".

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