The yen is much more undervalued today than it was then.
If that valuation ratio is ultimately going to reach more undervalued levels than the upper 20s, it means that, however fast earnings grow as the PE comes down, the market averages will go up at a slower rate than earnings.
Second, the Peterson Institute on International Economics estimates that the yuan is more undervalued today (28.5 percent) than it was a year ago (24.2 percent).
But the US said further appreciation was needed to prevent the yuan becoming more undervalued, particularly as the mainland continued to see productivity growth greater than its major trading partners.
He acknowledges that it's probably more undervalued now, but not much more.
"The Dow is still 40percentt or more undervalued given where profits are.
The more unloved the country, the more undervalued its assets and the more money to be made as its fortunes turn.
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