At last, most world stockmarkets are recovering and, along with good economic news from the US, confidence is beginning to return.
As we all know, the financial services profession has suffered more than most, due partly to poor stockmarkets but also to the FSA and the ombudsman using hindsight to assess investors' worries.
However, the FSA is becoming more realistic and it looks unlikely that most of the Sandler report's contentious recommendations will be implemented in full.
I believe that the shares of most financial services companies will recover strongly. In my opinion, the best way of taking advantage of this is through an investment trust called Amic, which is now standing at around a 40 per cent discount to asset value – a ridiculously low valuation.
Amic is run by George Robb, who was a founder of Aberdeen Investment. He set up Amic in 1994 and has built it to its current value of around £74m.
Amic's portfolio is spread over a wide geographic area. Robb and his team take an active role in the companies they invest in and therefore have an excellent insight into world investment patterns and the different strategies that the managers in their portfolio are undertaking to cope with market conditions.
Their investments in the UK include New Star – which is likely to be a big winner when the recovery comes – and City of London Investment Group, which has $320m of funds under management invested in emerging markets investment trusts. It has offices in London, the US and Singapore and is already showing good profits for Amic.
Amic is an ideal investment for those who believe in the future of financial service companies, as I do.