'Cockroach stocks' in Europe and Japan should guard against market shocks

Equity markets are being driven by the fact that bond yields have collapsed.

Income from good-quality 10-year sovereigns (or what used to be known as 'risk-free' assets when compliance was more relaxed) will not pay pensioners' energy bills. 10-year UK gilts are yielding just under 1% and France 0.18%. Germany promises a loss. Even Greece, not long ago considered a basket case, offers only 3% on its treasuries.  Savers, nervous about the ageing bull market, are desperate for sensible, secure yield and that makes defensive equities - companies profitable and robust enough to survive shocks like a trade war - attractive.  Income investors face 'leaner year' f...