Keith Balmer of BMO Global Asset Management now has more invested in British stocks than at any time in the past five years. His mixed investment strategy has 22pc in UK shares, twice its lowest level.

“The UK market is unique because it has such a high weighting to commodities, energy and banks. Inflation is coming from high commodity prices so that is good for profits [from those stocks],” he said. “Banks make more money when rates go up as their profit margins increase. We also like the FTSE 100 because 70pc of its earnings come from overseas, so a weak pound makes those earnings more valuable.”

On top of being home to the right companies for the current market environment, Mr Balmer said London shares were cheap, so future returns would be greater, particularly when interest rates rose.

“British stocks are at a 30-year valuation discount compared with global shares, but this will begin to change as investors move to valuing profits today over profits tomorrow. This rotation from ‘growth’ to ‘value’ shares has already begun if you look at stock market returns so far this year,” he said.

Simon French of Panmure Gordon, the stockbroker, said increased interest in UK shares on the part of overseas investors could create a virtuous cycle and begin to reverse their disappointing returns since the 2016 Brexit vote.

“Better performance could lead to inflows and then even better performance. There is little evidence of this happening so far, but this could soon change if shares start to do well,” he said.

Not only is the entire market cheap but specific British stocks are cheaper than comparable overseas businesses. Mr French found that nine of 11 business sectors were at a discount, with the most stark undervaluation in consumer staples and energy.