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Calm down: Why Brexit won't trigger a global recession

The UK’s vote to leave the European Union is sending shockwaves through financial markets as the British pound plunges to its lowest level in three decades against the US dollar.

Liz Ann Sonders, senior vice president and chief investment strategist at Charles Schwab, told Yahoo Finance’s Alexis Christoforous in the video above that the consequences of Brexit will be felt worldwide, warning an already sluggish global growth rate will likely slow even more.

“At this point our call is not for a global recession but a lessening growth rate relative to what was already an incredibly subdued growth rate,” Sonders says. “One of the benefits both in the US and in the global economy of this pace of improvement having been so sluggish is that the kind of excess that tends to precipitate recessions isn't there.”

Major US indices (^DJI, ^IXIC, ^GSPC) that recently were nearing record highs have plunged over the past two trading days. Global equity markets lost a record $2.08 trillion on Friday following Britain’s decision to leave the European Union as investors dumped equities and poured money into treasuries and other "safety" plays.

But Sonders isn’t panicking. She recommends a more “cautious” position rather than a bearish one, and thinks investors could eventually profit from beaten down British stocks. “At some point it probably becomes a buying opportunity, but one day later is a little too soon to make that call,” she said.

Britain's vote to leave the EU may also stop the US Federal Reserve from raising rates for far longer than previously expected. Sonders warns the Fed will only raise rates if we see an “unbelievably strong string of economic reports.”

“July is certainly off the table and I think September is probably off the table too,” she said.