Advertisement
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.

Advertisement - Article continues below

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.

Advertisement
Advertisement

Recommended

How long can the good times roll?
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
The British equity market is shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
James Montier: valuations are way too high
Investment gurus

James Montier: valuations are way too high

The market is completely discounting the risk to the economy and operating as if there is nothing to worry about, pricing in a V-shaped recovery, says…
10 Aug 2020
Don’t dump your dividends
Income investing

Don’t dump your dividends

This crisis certainly does not prove that taking regular capital gains is safer than relying on natural income from dividends.
10 Aug 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
UK house prices hit a new record high – can it last?
House prices

UK house prices hit a new record high – can it last?

Despite the pandemic, UK house prices have hit a new high. John Stepek looks at what’s driving the surge in prices, and what it means for house prices…
7 Aug 2020