Jim Mellon: wise words from a master investor
WHAT ARE YOUR FAVOURITE MARKETS TO TRADE IN?
Forex and indices.
WHAT ARE THE ADVANTAGES OF SPREAD BETTING?
Tax, convenience, leverage and cost.
WHAT IS THE MOST COMMON MISTAKE MADE BY TRADERS?
Sticking with losers.
WHAT IS THE MOST IMPORTANT LESSON FOR A TRADER TO LEARN?
Don’t trade unless you have a high degree of confidence in the outcome.
IN THE PAST YOU HAVE SUGGESTED SHORTING THE EURO AGAINST THE DOLLAR. IS THIS STILL A GOOD BET?
This is still a very good trade but you need to change your mind on a dime. I think the euro is destined to go to 1.20 against the dollar in the next two years.
WHICH EMERGING MARKETS ARE YOU MOST EXCITED ABOUT?
Turkey and Brazil. Turkey is undervalued; Brazil is resource rich and a real country – most Latin American countries are still small scale and dangerous.
YOU HAVE TIPPED SOLAR ENERGY AND BIOSCIENCE AS AREAS FOR THE FUTURE. DO YOU STILL BACK THEM?
I do, particularly bioscience. My new book on this will be out before the end of the year.
WHAT IS IN STORE FOR THE UK?
Very low growth and a poor housing market.
YOU HAVE PREDICTED THAT HOUSES WILL FALL 50 PER CENT FROM PEAK TO TROUGH IN THE UK – ARE YOU STILL WAITING FOR FURTHER FALLS?
Yes. The slow attrition of housing prices will persist for the next two years.
DO YOU THINK GEORGE OSBORNE IS GOING FAR ENOUGH?
On the cuts side yes, but he needs to be much more radical on taxes. The Laffer curve works.
WHEN COMPETING IN MARATHONS, ARE YOU ABLE TO SWITCH OFF?
I think about everything, from “did I switch off the gas?” to “is the yen cheap?”
Jim will be speaking at the UK’s largest investor show, Master Investor at the Business Design Centre in Islington on the 16 April. There are 20 pairs of free tickets for City PM readers. Call on 01624641 310 or email [email protected] Quote: “MI11CAM”.