Asian Equities Not Cheap; If You Must, Buy Techs

Asian equities no longer look very cheap, said Stephen Davies, CEO of Javelin Wealth Management on CNBC's Asia Squawk Box.

"They are pretty much in the middle of the historic range. If you compare Asia Pacific ex-Japan, relative to the more developed markets such as the U.S., the traditional discount that Asian markets used to trade at has been removed by the rally of the last six months," he said.

Davies told CNBC he is in favor of more developed markets instead of emerging ones. He advised investors to focus more on sectors that have significant rates of earnings growth, such as technology.

"Technology is a very good example. You would expect to see technology companies benefiting from increasing and recovering rates of capital expenditure as companies effectively re-engineer."


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When asked if investors should hold on to cash or not, Davies said it was advisable to be patient.

"I'd be quite happy to stick in cash and be patient, because the one thing we learnt last year or the year before, is that if you're impatient,you lose money."