Volatile times in markets require extra precision, says Goldman Sachs chief US equity strategist David Kostin.
In a new note on Friday, Kostin offered three recommendations for investors dealing with topsy-turvy markets ahead of the spring:
Own US stocks “insensitive” to drivers of ongoing market volatility.
Favor stocks with a high percentage of US sales and avoid companies with outsized overseas sales.
Own second-derivative AI stocks; for example, those in the software services sector.
Several well-known stocks that exhibit these characteristics include Costco (COST), Kroger (KR), Eli Lilly (LLY), Visa (V), Charles Schwab (SCHW), and Alphabet (GOOG), Kostin said.
The markets have whipsawed this year, especially in March as investors digest a flurry of tariff headlines and slowing economic data. Warnings on demand this month from big companies Nike (NKE), FedEx (FDX),…
