He said paying off mortgages and other debt was a good thing but warned: "If we all pay off our mortgages we'll have a depression."

Mr Pattullom, in his talk called: "Hair of the Dog – keep spiking the punch bowl?" said that given the change of policy at the ECB, he questioned how effective the Long Term Refinancing Operations (LTRO have been. 

He said central banks pumping money into economies was not working as effectively as predicted although the options were limited.

He said that options for investors in bonds and gilts were limited and gilts were "absurdly expensive." He said at present he preferred Triple B credit and the "top end" of Double B but he was being very selection.

Mr Pattullo's view was that the debate on austerity in Europe was changing and that structural reform, in the face of widespread protests in some countries, was very difficult but reform was necessary. 

He added that he was sympathetic to the view, expressed by other speakers at the Morningstar Conference, that equity yields were actually better than bond yields at present but he said investors had to be very selective.