Goldman Reverses U.S. Stock Advice, Says Shun Overseas Sales
Nov. 6 (Bloomberg) -- Goldman Sachs Group Inc. strategists advised U.S. stock investors to buy companies that generate most of their sales in America and avoid those with high overseas revenue, reversing a strategy they had advocated through July.
David Kostin, who leads Goldman's New York-based portfolio strategy team, recommended shares of 50 companies that get a large percentage of sales in the U.S., including Union Pacific Corp. and Kohl's Corp., on expectations that foreign economies will deteriorate at a faster pace. Money managers should reduce holdings of companies with the most non-U.S. sales and sell short those with high revenue from western Europe, according to a research note dated yesterday.
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