BlackRock's Bolton: European shares cheapest for 100 years

Nigel Bolton, head of the BlackRock European equity team, has picked his winners from among Europe's unloved sectors as equity valuations fall to '100-year lows'.

So far this year, the sectors with better earnings momentum have been those with high global exposure, such as industrials, food and beverage companies. Conversely, those focused on the domestic European consumer, such as utilities and telecoms, have been the weakest. However, Bolton (pictured) said these sectors could still fare well from the point of view of yield support, despite uncertain cashflow expectations. "We are finding sectors that offer dividend yields higher than their own bond yields, as companies can borrow money at a lower coupon than their dividend yield," Bolton sai...