Fidelity’s Anthony Bolton says he’s optimistic about global equities, and valuations are a big reason.

“I am still a bull of world equity markets,” Bolton, who produced an exceptional track record in the U.K. and now oversees a China-focused fund, said at an Investment Week conference. “I think in this business you have got to look at what is discounted in valuations, not at the outlook. A very cautious view is discounted in valuations at the moment. But I do not think we ever got into [the phase of] overvaluation in the bull cycle.”

Bolton sees a bifurcated world in terms of economic growth prospects. “I think everyone now realises there will be below trend growth in the US and Europe for the next few years,” he said. “The relative growth in emerging markets is going to look particularly attractive in that environment.”

Bolton also says he’s as high on China as he’s ever been, and lays out some of the reasons he thinks the country can overcome problems like inflation.