Drop in fixed interest options boosting equities

Brian Gaynor, executive director of Milford Asset Management, said he expected 2014 to be another good year for New Zealand equities.

It comes after HSBC chief economist Paul Bloxham predicted that New Zealand could be the "rock star" economy of 2014, and BK Asset Management's Kathy Lien identified the kiwi dollar as the "hottest" currency of 2014.

Gaynor is predicting sharemarket growth of 10% to 15%. Last year’s growth was 16.5% and 2012’s was more than 24%.

“I’m reasonably optimistic that it will do over 10% but it will be hard to get to 20%,” he said.