Can our strong economy hold through 2018?

The New Zealand share market has had a very strong year on the back of sustained low interest rates but can it continue its run in 2018?

Senior investment adviser at Hobson Wealth Partners, Brad Gordon, says it will likely depend on what happens with interest rates in the US and whether the new coalition government’s spending plans prove inflationary.

Gordon says the local share market has been driven along by stocks that have good dividend yields, like the electricity generators and a small number of stocks that have strong international prospects such as A2 milk and Fisher and Paykel Healthcare.

“It has become something of a stock pickers' market” Gordon said in a video interview with Newsroom.

He predicts that stocks that deliver on their growth forecasts, even if they have high price-to-earnings ratios, will continue to be sought after.

In the interview, Gordon looks back at the trends of 2017 and the prospects for 2018.

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