Billionaire Investor Jim Mellon: U.S. Stocks Are Severely Overvalued, Favor Gold, Energy, and Yen

Deep Tide TechFlow News, March 8 — According to Business Insider, billionaire investor Jim Mellon recently stated that the U.S. stock market is “seriously overvalued” in his view, despite the U.S. accounting for only about 3% of the global population, yet holding over 60% of the world’s market value. He pointed out that tech giants are highly stretched in valuation, financing leverage is at historic highs, and they are shifting from having “moat advantages” to overlapping AI data center investments, all of which are warning signs. Berkshire Hathaway, Warren Buffett’s company, holds over $350 billion in liquid assets, which Mellon considers a negative signal in itself.

In asset allocation, Mellon favors gold and silver, believing that ongoing government policies worldwide are eroding fiat currency purchasing power; he sees the energy sector as “the most worthwhile investment area right now” because the AI boom is driving a surge in data center electricity demand, and the energy sector’s share in global stock markets is still severely undervalued. The yen is attractive due to being “extremely cheap relative to the dollar” and benefiting from Japan’s interest rate hikes. He states he will “completely avoid U.S. stocks,” remains cautious on the Chinese market, and is seeking opportunities in the UK and emerging markets.

Regarding AI employment, Mellon believes young people should focus on developing empathy and interpersonal skills, as roles requiring human touch, such as social and elderly care, will become increasingly valuable. He warns that blindly chasing current hot technologies is not the right path; previous generations were encouraged to learn programming, but now these jobs are among the most impacted by AI.