Japan veteran says investors 'unfairly obsessed' with roaring yen

The manager sees car maker Honda as a prime example of Japan's prowess in the industrial sector.

‘It is a highly successful company, but can be bought on a PE of 10 times.’ McGlashan said.

McGlashan recently bought into NGK Sparks, which as its name suggests produces spark plugs for cars.  Like Honda, it trades at a PE of 10 times, well below its historic level.

‘Business in car production has gone up throughout Europe and 2010 will be a record year for car production,’ McGlashan explained.

‘The market has become obsessed with corporate profits and the yen and I think this is unfair given these PE ratios and the outlook for company profits.

'With patience the yen will turn around and stocks like these will fly.’