Why these are the worst stocks to own right now: Goldman Sachs

Why these are the worst stocks to own right now: Goldman Sachs

Not every sector of the market is a longer-term buy even with stocks continuing to be on autopilot, warns strategists at Goldman Sachs. 

Some of the worst stocks to own in a U.S. economy trying to claw back from the COVID-19 pandemic are those with high exposure to tight labor markets, which runs the risk of pressuring profit margins as wages are hiked.

"Labor market tightness will remain a challenge during the next few years. Investors should avoid stocks with high labor costs relative to EBIT [earnings before interest and taxes]," says David Kostin, Goldman Sachs chief U.S. equity strategist, in a new research note to clients.