Wells Capital’s James Paulsen says he’s finding a lot of good values in emerging market stocks and in US stocks that are more economically sensitive.

Paulsen tells BloombergRadio’s “Bloomberg Surveillance” that he doesn’t think the economic expansion is over, and that fears of a hard landing for China and a recession for the US have been creating a lot of bargains both at home and abroad. In the US he likes manufacturing, basic materials, and industrial stocks.

Paulsen also talks about why he thinks the financial sector’s deleveraging process is further along than many people think, and why he thinks the Federal Reserve should focus more on improving confidence than on increasing liquidity at this point.