As tariff deadline nears, Goldman says buy stocks with only U.S. sales
As President Donald Trump’s tariff deadline looms, investors should embrace companies that rely on domestic sales and steer clear of those with a high proportion of overseas revenue, according to Goldman Sachs. The Wall Street firm’s chief U.S. equity strategist David Kostin is recommending a handful of trades for investors in response to the changing macroeconomic environment. One of them is buying a group of stocks that Goldman calls its “Domestic Sales” basket, whose median stock gets 100% of sales in the U.S., meaning they should be largely insulated from Trump’s aggressive tariffs. Trump has vowed to begin enacting sweeping “reciprocal tariffs” starting April 2 on other countries that put up trade barriers to U.S. goods. The administration may also announce additional sector-specific tariffs to strengthen key U.S. industries. The president’s protectionist trade policy has stirred up volatility on Wall Street and stoked fears of dampened consumer spending and slower economic growth. The S & P 500 officially entered a 10% correction late last week, and is now sitting 7.9% below its February all-time high. Companies that have 0% sales outside the U.S. include telecommunications giants Verizon and T-Mobile, home improvement and homebuilding plays Lowe’s and D.R. Horton , as well as grocery chain Kroger .
