TOO many people in finance are jumping on the doom-and-gloom bandwagon, according to two of South Africa’s leading financial commentators.

Dr Adrian Saville (pictured), chief investment officer at Cannon Asset Managers in Johannesburg, and its chief executive, Geoff Blount, both believe that despite analysts predicting further upheaval and damage to the global markets, the economic outlook is brighter than markets are pricing.

The pair made the claim while visiting the island to address the clients and staff of the company’s Guernsey head office, Cannon Asset Management, on the implications of the political uncertainty in South Africa, as well as the impact the credit crunch is having on investors and equity markets.

‘While January saw the worst ever start to a year on world equity markets, things are not as bad as they seem,’ said Dr Saville. ‘All too often investors are blinded by either optimism or pessimism and tend to overlook the evidence which does not support their current belief. Equities remain the top-performing asset class over the long term. To move out of this class at precisely the time when they are offering such value would be to give up the potential to earn substantial returns.’