Be warned! The next time I am asked how much of my UK Equity Fund is non-UK I will use expletives! Everyone wants my portfolio to be made up of companies that operate outside this country - Brazil, China, India and Siberia are all considered better than UK domestic business. But be warned, if you share this anti-UK view you are not alone, in fact you are part of the biggest consensus club since the TMT bubble. And huge consensus trades are rarely right.

As for me, I quite like UK based companies. Whisper it quietly so that the bearish commentators don't lynch you, and the UK economy is actually doing rather well. Unemployment is falling, business surveys are robust and suggest a normal cyclical recovery, asset prices such as housing and commercial real estate are rising and providing a robust under-pinning to an improving banking market, and the corporate sector is seeing a very strong pick-up in profits and cash flow and as a result should start putting demand back into the economy through greater investment in capital and people. The public sector deficit is very large, but whoever wins the next election will have the mandate to sort it out.

And then look at the valuation of UK companies you can buy, they are being given away.  Home Retail (owner of the great Argos franchise) is trading on less than five times cashflow, Lookers (a high quality car dealership) is trading on only eight times profits at the bottom of the cycle, Persimmon (one the UK's best housebuilders) is valued at a significant discount to a conservatively accounted book value, and Lloyds is trading at a quarter of the price to tangible equity of its emerging market equivalents. UK companies are being given away, and no doubt predators from around the world are circling, happy to pay for things denominated in our giveaway currency.

Buy British and be proud!