TechFlow News, March 8: According to Business Insider, billionaire investor Jim Mellon recently stated that U.S. equities appear “severely overvalued” in his view—despite the U.S. accounting for only about 3% of the global population, its market capitalization exceeds 60% of the global total. He pointed out that valuations of tech giants are extremely stretched, leverage levels for financing have reached historic highs, and these firms are shifting from individually possessing “moat advantages” toward overlapping investments in AI data centers—an alarming signal. Berkshire Hathaway, Warren Buffett’s conglomerate, holds over $350 billion in liquid assets; Mellon considers this fact itself a negative indicator.
Regarding asset allocation, Mellon favors gold and silver, citing persistent erosion of fiat currency purchasing power by global government policies. He views the energy sector as “currently the most attractive investment area,” driven by surging electricity demand from AI-fueled data centers, while energy remains severely underrepresented in global equity indices. The Japanese yen is also appealing due to its “extreme cheapness relative to the U.S. dollar” and benefits from Japan’s interest rate hikes. Mellon said he will “completely avoid U.S. equities,” maintain caution toward the Chinese market, and seek opportunities in the U.K. and emerging markets.
On AI and employment, Mellon advises young people to focus on cultivating empathy and interpersonal skills, as roles requiring human warmth—such as social care and eldercare—are becoming increasingly valuable. He warns that blindly chasing today’s hottest technologies is not the right path: the previous generation was encouraged to learn programming, yet such jobs are now among those most vulnerable to AI disruption.
