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Pro Analysis

Goldman: Buy these 10 domestic stocks to beat market

A screen displays the ticker symbol and information for Goldman Sachs on the floor of the New York Stock Exchange
Brendan McDermid | Reuters

Domestic stocks with the highest U.S. sales should outperform their multinational counterparts in the months ahead due to a strengthening dollar and their safe-haven appeal, Goldman Sachs predicts.

"We expect U.S. GDP growth of 2 percent and diverging monetary policy regimes between the U.S. and other major global economies will strengthen the USD [U.S. dollar] during the next 12 months," Goldman's market strategist David Kostin wrote in a note to clients Tuesday.

"A more hawkish Fed than the market currently expects, coupled with additional monetary easing in Europe and Japan should boost the U.S. dollar by 7 percent during the next 12 months," he added.

In the past two years, the U.S. dollar index, a measure of the greenback's performance against a basket of major international currencies, rallied more than 20 percent as investors sought refuge from geopolitical issues such as the Brexit fallout.