Goldman's Fed rate-hike playbook for clients

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

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.

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