How to trade Goldman's prediction for a Trump 'hope' market spike in first half of 2017

A man poses for a photo with the Wall Street bull sculpture between Broadway and Exchange Place in the Financial District of New York.
Andrew Harrer | Bloomberg | Getty Images

Investors' enthusiasm over the potential economic policies implemented by President-elect Donald Trump could lift the by 9 percent to 2,400 in the first quarter of 2017, predicted Goldman Sachs.

The firm's chief U.S. equity strategist, David Kostin, believes investors are focused "more on hope than fear" since Trump won the U.S. presidential election and there is a specific way to invest around that trend.

"'Hope will dominate during the first part of 2017 as cyclicals beat defensives. Firms with high domestic sales will outperform along with companies with high tax rates," Kostin predicts.