"Investors have lost all confidence in China," says Howard Marks (OAK), who is scooping up what he calls "tremendous bargains" in common stocks there. "We are investing in Chinese equities along with emerging markets."
He notes the Shanghai Composite's price-to-book ratio is about half of 2010's level and the P/E multiple is 42% lower. "The swings of the pendulum were excessive."
As for the U.S., stock valuations have moved from cheap to fair. "It's not overpriced in the context of history."