Asian markets look attractively valued. Mean-reversion on valuation over the next five years would deliver an annual return of 8.9 percent. He further says earnings in the region are recovering, most evidently in the cyclical markets of North Asia, as is liquidity. Sentiment remains too negative and investors are sheltering in the more defensive ASEAN and India markets. By contrast, he advocates a more pro-cyclical, pro-value stance, and favoured markets are Korea, Singapore and Taiwan. Sector-wise, he is overweight on technology, materials, banks and consumer discretionary.
While he likes risk as an investment factor, he acknowledges it could backfire on trade frictions, more political upsets and a stronger USD in 2017. With valuations 0.5 standard deviation below mean, though, Asia ex-Japan looks to be pricing in too fearful an outlook.
Asian markets look attractively valued. Mean-reversion on valuation over the next five years would deliver an annual return of 8.9 percent. He further says earnings in the region are recovering, most evidently in the cyclical markets of North Asia, as is liquidity. Sentiment remains too negative and investors are sheltering in the more defensive ASEAN and India markets. By contrast, he advocates a more pro-cyclical, pro-value stance, and favoured markets are Korea, Singapore and Taiwan. Sector-wise, he is overweight on technology, materials, banks and consumer discretionary. 
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