The NZX-50 closed on Friday on 3213, up more than 1% on the Thursday close.
Craigs Investment Partners broker Chris Timms has a positive view of the markets, particularly in New Zealand and Australia.
Companies had the ability to make their market adjustments much faster than the general public as the global economies climbed out of the recession.
Companies had adjusted their sales, reduced debt, had positive operating cash flows and were generally paying higher dividends, he said.
Increasing dividends was a sign companies were confident of positive cash flows in the future.
Investors were willing to start pricing risk back into their portfolios, Mr Timms said.
"I do feel we are at the beginning of another rally. I am more comfortable talking to clients about shares. The income generated from equity markets outweighs the short-term blips in the markets."
Companies like The Warehouse Group, Methven, Cavalier, Telecom and Vector were providing yields of 9% or more.
"Small and medium-sized enterprises are struggling but corporates are looking much more positive."
Fonterra, New Zealand's largest exporter, was well placed for a global recovery because of its ties to Asia.
Australia's steel industry was well placed for the growing demand for new infrastructure in China.
"When it's good for Australia, our companies tend to get dragged along," Mr Timms said.
Forsyth Barr broker Tony Conroy said the New Zealand market was trading on undemanding fundamentals based on cyclical low earnings.
The gross dividend yield gap was high at 3.4% and historically when there had been a sharp increase in the yield gap coinciding with earnings per share growth, it had led to large positive returns in equities of more than 20%.
"We expect earnings to increase sharply in full-year 2012 and this will become more evident over the next six to 12 months. That will be a key driver for the market.
"If we follow the pattern of other cycles, the New Zealand equity market could increase by 15% to 30% over the next 12 months. That will be highly dependent on earnings growing by 15% in the 2012 year."
However, the economic conditions were still fragile and Forsyth Barr's strategy was still slightly defensive but the firm was beginning to increase its exposure to higher risk stocks, Mr Conroy said.
Overseas, Wall Street wrapped up its best quarter in a year with the Standard & Poor's and Nasdaq indices recording their biggest monthly gains since April 2009.
Data released last week showed the United States economy was not in as bad a shape as expected.
A poll by Reuters showed leading investors around the world increased equity holdings to their highest level in three months in September and reduced bonds and cash holdings as confidence about the global economy grew.
The euro hit a five-month high against the US dollar and was on track for its best quarterly gains for eight years as data showed euro zone banks were relying less on funds from the European Central Bank.
The news reinforced expectations Europe might gradually remove policy stimulus before the US and Britain, helping offset concerns about Ireland's fiscal and banking problems.
Oil rose to a seven-week high to nearly $US80 a barrel after lower US jobless claims stoked optimism for economic recovery in the world's top oil consumer.
Mr Timms said there were positive signs emerging around the world.
"If we can build on those positive gains, there will be a better period ahead for local and overseas sharemarkets."
