A British investor who some like to call Britain’s answer to Warren Buffett has given a stark warning on both stocks as well as also bonds.
Jim Mellon of the Burnbrae Group says U.S. equities are close to a top, there are ominous signs for the bond market, as well as also profits at large tech companies will likely sag inside the face of brand-new regulation.
“We are pretty close to a top. I have been in This particular market for 30, 40 years as well as also I might say the idea will be extremely fully-valued by most measures,” he told CNBC Wednesday.
For fixed income, Mellon said global debt was in a bubble-like territory. The investor said he expected bond values to fall further having currently broken through key resistance levels.
“The dividend yield on the S&P 500 will be below the 2-year Treasury note for the very first time as well as also of which’s an ominous sign,” Mellon added.
For FANG (Facebook, Amazon, Netflix, as well as also Google) stocks, Mellon admitted he had been on the wrong side of market moves inside the last six months, nevertheless he remains bearish on big tech.
“I do think they have unacceptably high valuations as well as also are pretty unaccountable in terms of their behavior as well as also something will be going to happen.”
Mellon added of which over time, large tech companies are going to be more strictly regulated as well as also their profit margins will come under pressure.
Mellon’s wealth, estimated at around $1 billion, was largely made by investing in emerging markets. He has been described as Britain’s Warren Buffett — a description he has flatly rejected due to the difference in both age as well as also fortune.