Rob Arnott of Research Affiliates and PIMCO is finding value in emerging market stocks and high-yield bonds.

Arnott tells Brett Arends of The Wall Street Journal that emerging-market stocks have lagged those in the U.S. over the past five years, and are now considerably more attractive than U.S. stocks. And, while high-yield bond yields have fallen to record lows recently, they are still attractive, Arnott says. On average, high-yield bonds yield about 5.3 percentage points more than comparable Treasury bonds, Arends reports, which is in line with the median difference since 1996 of 5.5 points.

Arends looks at a variety of interesting valuations metrics in the article, including Tobin’s Q, which currently indicates the market is 50% overvalued.