Investment banking firm Forsyth Barr says a share market rally is underway and favourable equity returns are likely over the next three to six months.
Senior analyst Guy Hallwright says these predictions are based on four recessions since the 1970s that have shown similar paths, though he points out they were not as severe as the current economic crisis.
Mr Hallwright says it can be riskier for investors to sell out of the market than remain in it, as when recovery happens, it happens swiftly.
He says the risk of any further major decline in the market is relatively low, but investors still cannot be sure markets will produce strong positive returns quickly.
Mr Hallwright says the best returns are generally seen in the last quarter of negative growth - which is is only known once it has already passed.