Should investors really fear Brexit?

I will probably vote 'Remain' on 23 June. Like most Brits I understand well the shortcomings of the EU experiment. Of course, there's plenty wrong with Brussels and its myriad unintelligible and opaque mechanisms, too many of which are in urgent need of reform.

However, I'm of the belief that it's easier to drive change from within and in a position of power rather than try and be heard through a very small EU-shaped letterbox. However, I say "probably", not "will" vote 'Remain' because the 'Leave' campaign has got me thinking - what if?

Sterling might crash by 20%, share prices could collapse, and a prolonged period of political and economic uncertainty risks turning Britain into a pariah state. It's why Brexit is obviously the dangerous option. Eurosceptics would call it the price of freedom.

But I'm no Chicken Licken - the sky will not be falling down on 24 June if we vote 'Leave' - and I'm also not the only one losing less sleep over a Brexit. Plenty of smart professionals I speak to, both inside and outside the Square Mile, admit to experiencing fewer worries about the implications of an EU exit.

No dead-cert

The point of all this is that the vote, which takes place in just two weeks' time, is not the dead-cert I thought it was just a few days ago. A wall of hot money backing a 'Leave' vote suggests punters aren't so sure either. According to bookies, the odds on a Brexit have narrowed to 7/4, while odds-on bet 'Remain' lengthened to 2/5.

That said, and despite the unknowns, markets have held up pretty well. Of course, they're sensitive to poll results, but the FTSE 100 has just traded above 6,300 for the first time since April, and even the FTSE 250, home to big domestic earners, is holding its own. Mid-caps on many measures remain cheap. As Goldman Sachs acknowledges, "the fall in sterling and rise in oil prices are substantial offsets to Brexit risks" for global firms that dominate the blue-chip index.

And Brexit isn't the only show in town, either. US monetary policy, an American presidential election in November, oil prices and China continue to drive sentiment globally.

With only a few per cent between the two sides, I'd still put my money on 'Remain'. My guess is the 'undecideds' - as much as 16% in some polls - will decide in favour of maintaining the status quo, whatever that might look like in the aftermath of the 23rd. But I'm not betting the farm on it.

Again, the bookies say fewer of us are. It's why investors must be savvy at times like this and exercise caution, but also be prepared to deploy cash when opportunities arise. To help you cut through the noise, Interactive Investor has asked a team of experts how they would approach investments before, during and after the big day.

David Buik, a legend in the Square Mile and regular Interactive Investor contributor, reveals his take on the EU vote, whether investors should be worried, and where you should be investing your money if we leave the EU.

Elections can play havoc with stockmarkets, so what should investors do ahead of the referendum? Financial analyst Louise Cooper has some great advice for all investors, including how to Brexit-proof you portfolio.

A Brexit would likely trigger a quick and sharp decline in the value of the pound. Former AIM writer of the year Andrew Hore has identified three AIM companies which could provide a hedge against the uncertainty.

Harriet Mann reports on a recent encounter with the team at Rathbones, and why now may be a great time to buy if you're utterly convinced we'll still be at the EU's top table come 24 June.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.