Wall Street is preparing investment strategies after an interest rate hike as the strong employment report further solidified the probability of a Fed move later this month.
In a note to clients Friday, Goldman Sachs' Richard Ramsden gave a guidebook on investing in financials for next year:
"Given potential unknowns around the path of hikes and shape of the curve, the expectation is that the dispersion in financials can finally rise and stock-picking will become relevant in 2016."
The analyst said the sector is attractive due to reasonable valuations and 10 percent earnings growth versus the 8 percent estimated for the general market.
Here is how bank stocks traded in previous rate-hike cycles and the financial stocks Goldman recommends.