Features

Jim Mellon: dividend stocks look cheap – but beware inflation

John Stepek talks to Jim Mellon ahead of the MoneyWeek Wealth Summit to get his views on some of the hottest topics in finance today.

191113-jim-mellon

Jim Mellon is one of Britain's best-known entrepreneurs and investors. His most recent book, Juvenesence: Investing in the Age of Longevity, written with Al Chalabi, is a layman's guide to longevity technology, and the potential advances we could see in the very near future in terms of living healthier, and significantly longer lives.

Jim will be at the MoneyWeek Wealth Summit on 22 November, talking about where he sees the most exciting investment opportunities right now. We caught up with him ahead of the big day to get his views on some of the hottest topics in finance today.

How concerned should investors be about the current political turmoil and if you had to choose one area that concerns you most, what would it be?

I don't think turmoil in politics is particularly important in itself. What I do think is important is that perceived inequality around the world is leading to disruptive riots and demonstrations. These all have different alternative narratives behind them for example, climate change, democracy in Hong Kong, Brexit, etc. But they are fundamentally all linked to low-grade life chances for young people.

What's your view on the increasing visibility of ESG (environmental, social and corporate governance) investing and what do you think investors should be considering with regard to its effect on their portfolios?

ESG is a trendy theme, but is essentially an investment-limiting one. Sure, invest in the zeitgeist, but don't restrict yourself to it.

Are there any individual markets or asset classes that you feel are highly overvalued right now? And any that look like good value or even bargains?

Tech stocks "forever growers" are way overvalued, but dividend stocks are way undervalued in the context of low or negative interest rates.

What do you consider to be the biggest long-term challenge right now to those saving for retirement?

Low rates of return mean people have to save right now, put more away and keep putting it away. Also people are going to live much longer. That's obviously not a bad thing, but it does mean that they will need to work longer.

Thinking about the investment and economic landscape, what makes you feel optimistic today? And what makes you feel pessimistic?

Wonderful opportunities abound today, in new industries including climate change, agritech and of course "Juvenescence"-style industries. Short term though, the world faces a big unravelling of debt and probably much higher inflation. In that context, gold and related investments are bankers.

Get your ticket to the MoneyWeek Wealth Summit here today.

Recommended

Stockmarkets shrug off turbulence
Stockmarkets

Stockmarkets shrug off turbulence

Stockmarkets have hit their first bout of turbulence of the year, but most are clinging onto January’s gains.
4 Feb 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The MoneyWeek Podcast: how to not lose money to inflation and financial repression
Investment strategy

The MoneyWeek Podcast: how to not lose money to inflation and financial repression

Merryn talks to Peter Spiller of the Capital Gearing Trust about how he navigated the last extraordinary year; what he's buying now; and how he plans …
16 Apr 2021
UK mid-cap stocks look forward to life after lockdown
UK stockmarkets

UK mid-cap stocks look forward to life after lockdown

The FTSE 250 hit an all-time high at the end of last week, as investors look to a post-lockdown recovery.
16 Apr 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021