NEW YORK (TheStreet) -- The U.K. referendum to leave the European Union continues to pressure global markets, as the Dow Jones Industrial Average closed down 260.51 points on Monday.

Possibilities of a recession continue to dominate interpretations of the post-Brexit global economy, but Chase Chief Economist Anthony Chan believes the current equity market decline does not necessitate an economic downturn.

"Let's not forget Black Monday, back in 1987. We had a 22.6% decline in the Dow and we had to wait three more years for a recession," Chan said on CNBC's "Closing Bell." "Over time, as central banks really try to sort of contain the problem, the financial markets will recover."

The market shocks in response to Brexit are because "the financial markets were not fully anticipating" this outcome and Chan sees the current downturn as only the markets reacting.

He also believes that a stronger dollar does not equal a weaker economy. "On average the dollar gets 1% to 2% stronger right before a recession," Chan noted before adding that, "the great global financial crisis, the greatest recession since the depression, we actually had the dollar declining. 4% to 5%."

"The strength in the dollar is no guarantee that we're going to go into a recession," Chan said. "Because we know that central banks are going to come to the rescue. This is not your father's financial market."