Tags: Goldman | US | Stocks | america

Goldman Sachs: Now Is Time to Buy US Stocks, Don't Fret About Europe

Thursday, 12 Jan 2012 08:12 AM

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The time to buy American is now, Goldman Sachs analysts conclude, at least where stocks are concerned.

Economic indicators are improving in the US, and Europe is becoming a more distant threat.

"Cyclical areas of the U.S. economy improved in late 2011 from low activity levels and we expect that trend to continue in 2012 as auto sales improve and housing activity bottoms," Goldman Sachs equity strategist David Kostin says in a note to clients, according to CNBC.

"Select companies exposed to those areas of the economy have attractive risk-reward if activity normalizes, even without a strong recovery."

Those select companies include Ford, Ingersoll-Rand, CSX, Lowe’s and Toll Brothers, according to Goldman Sachs.

Other experts agree that when it comes to investing, few can do better than the red, white and blue.

"The U.S. economy, though sluggish in recovery relative to past expansions, is superior to most of the world's economies (with the exception of some emerging markets) in terms of diversity of end markets, quality of global franchises, management expertise, operating execution and financial foundations," Doug Kass, of the Seabreeze Partners Management hedge fund, writes in a note, CNBC adds.

"Conditions have evolved over the near and intermediate term that have conspired to favor risk assets in the U.S. over many other areas of the world."

Others have grown extremely bullish on the U.S. economy, including economist Brian Wesbury of First Trust.

Ignore anyone bearish for 2012.

"I'm looking for about 3 percent growth in GDP and it could even be stronger than that and 20 percent growth in stock prices mainly because the economy is going to be stronger than people think," Wesbury tells Yahoo's The Daily Ticker.

"And number two, earnings: they're at an all-time record high and they are going to grow again in 2012."

"I think it's going to be a gangbuster year for the markets and the economy."

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