Goldman: Which stocks you should own and which to avoid when FED raise rates

Goldman Sachs economists do not expect that the Fed will raise interest rates until the end of December, but the bank's equity strategists are already preparing customers for the first increase in almost a decade.

In a tape released late last week, David Kostin and his team offer a list of shares that have a list of stocks to avoid, when interest rates rise.
Overall, the team found that so-called "quality" stocks, or those with strong balance sheets, with growth in the three months after the initial increase in the interest rate. Following the statistics, the first increase in interest rates in 1994, 1999 and 2004, companies with strong balance sheets reported an increase of 5% on average.

Here's a look at some of the shares that Goldman recommends in its "High Quality Stock basket."
Chipotle
Dollar Tree
Pepsi
Kinder Morgan
BlackRock
Google
Apple
Priceline
Oracle
Wells Fargo

With respect to the shares to avoid companies with floating rate debt because their financial costs are likely to increase after the Federal Reserve finally moved away from this level of the rate.

Here are some of the most notable names in the list of Goldman.
Apple
eBay
MetLife
Coca-Cola
General Mills
Ford
McDonalds
General Motors
Time Warner
Chevron
Allergan
Johnson & Johnson
Monsanto
You will notice that a few companies are on both lists, such as Apple.
As David Shavesh, portfolio manager at Square 1 Bank, stating it's certainly possible for a company to have a strong balance sheet and a large debt with floating interest rates.

E.Dimitrov JrTrader
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