According to Goldman Sachs, investors should take refuge in companies that make a lot of money in the country, as a strong dollar hurts multinationals. “Earnings results and euro/dollar have shifted the focus of our recent investor conversations to the impact of US dollar strength on equities,” said David Kostin, head of Goldman’s US equities strategy, said in a note. Concerns about global growth have sent the safe-haven dollar higher this year. The dollar index, which tracks the greenback against six major currencies, hit a multi-year high earlier this month. The greenback also hit multiples high against currencies like the euro and yen. Several well-known companies have warned about profits being affected by the rising dollar. In June, Microsoft said its fiscal fourth-quarter revenue and earnings would be affected by foreign exchange. IBM and Johnson & Johnson also issued similar warnings. “Recent dollar strength will likely lead to a high frequency of revenue shortfalls this quarter,” Kostin said. “Historically strong dollar periods coincide with disappointing sales results from S&P 500 companies.” Strategists say companies that focus on domestic sales have been doing better than companies that rely on international sales. So far, Goldman’s basket of sector-neutral S&P 500 companies with the highest percentage of domestic sales has outstripped a basket of foreign-facing stocks by 11 percentage points. Goldman listed several stocks with 0% overseas sales, including telecom giants Charter Communications and Verizon. A number of locally-focused names also made the Goldman list, including Dollar General, Chipotle Mexican Grill, Target, Altria Group and Kroger. “Going forward, GS’s economic and forex forecasts imply that US stocks with high sales in Europe will continue to underperform,” Kostin said. “GS economic forecasts also suggest a challenging outlook for US stocks given a high percentage of revenue from China.” – Michael Bloom of CNBC contributed reporting.