Outlook for Investment Markets
At the start of 2014, there is low volatility, high levels of confidence among investors and expanded valuations, which is causing some exuberance in the markets. However, there is strength the local equity market as the domestic economy expands on agriculture-based growth and on the expectation the effects of the Christchurch rebuild and of Auckland housing construction are still to come through. A likely consequence, however, is that the Reserve Bank of New Zealand will embark on a series of tightening moves, possibly with some pauses along the way while the bank assesses their impact.
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