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The "buy American stocks" trade is gaining backers by the day—including Goldman Sachs on Tuesday—as US economic indicators continue to show improvement and investors become less-focused on Europe.
“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,” said Goldman equity strategist David Kostin, in a note to clients.
“Select companies exposed to those areas of the economy have attractive risk-reward if activity normalizes, even without a strong recovery,” he added.
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