PSigma's Mott - yields on defensives 'most attractive ever'

PSigma's income guru Bill Mott says defensive sectors are offering the most attractive yields relative to 10-year gilts he has ever seen.

Government bond yields across the world suggest a low growth, low inflation environment, with the chance of deflation, Mott says. Against this backdrop, bonds are still good value, while investors are likely to suffer "significant losses" on commodities and economically sensitive equities, he argues. "However, if fears of deflation prove unfounded or lead to an inappropriate policy response from central banks, we could be in a 'bond bubble' and the flows into bonds and bond funds since 2009 could be a repeat of the money that poured into technology, media and telecoms stocks at the heigh...