A longer than expected slowdown in Asia has pushed stock market valuations to the lowest in more than a decade.

High crude prices and inflation are taking a toll, as MSCI Asia Pacific Index is currently trading at a price to earnings multiple of 13.8 per cent, its lowest since 1995.

In fact, leading brokerage house Citigroup is concerned over further fund outflows from Asia and says Global and Emerging Market funds are facing continuous redemption pressures almost upto $2.9 billion.

China has a double whammy ahead even as stocks fell in Shanghai on Monday, Goldman Sachs expects China's economy to slow due to industrial shutdowns for the Olympics.

But the believers are still buying as the valuation hit almost rock bottom many consider this a cherry picking chance.

While earnings for Asian companies may continue to struggle, many are using this slump as a chance to streamline and improve efficiencies.

“If you are able to see in terms of year then you will definitely want to buy into the recent weakness in emerging market specially in India and china,” said Jim Awad, Chairman, WPStewart AMC.

The story on the street is no more about the sentiment alone it is about the strategy during the slowdown.

It is clear this gloomy period is likely to last in the short term and so as valuations slide it is the dark horses who will drive the market money.