Goldman Sachs told clients to buy companies with strong prospects for future growth as these names will do well even if Donald Trump's economic agenda disappoints expectations this year.



"Investor angst is high. One investment strategy that avoids the risk of potential policy pitfalls is to focus on stocks with high secular growth potential," strategist David Kostin wrote in the note to clients Friday. "'Unsettled' is our best description of fund managers' mindset as the new administration takes office. ... Policy uncertainty was a topic of concern raised in every client meeting."

Kostin said investors have growing concerns over President Trump's tax reform plan due to lack of details thus far and changing policy positions.

"Investor confusion increases when a topic that appears to be gaining political momentum — such as border adjusted tax reform — is suddenly discredited when the president dismisses the idea saying it is 'too complicated,'" he wrote.

The strategist updated the firm's "Rule of Ten" basket of secular growth stocks that are "capable of growing sales rapidly, independent of economic and policy uncertainty." Members of the list met the following criteria:

"(1) increased sales by at least 10% in each of the last two years; (2) forecast to grow sales by 10% or more in each of the next two years based on estimates from Goldman Sachs equity research analysts; and (3) have consensus long-term earnings growth of at least 10%."

Here are five buy-rated secular growth stocks in the basket Goldman recommends.