Stocks to buy, 29 cheap stocks set to generate higher earnings: GS

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Goldman Sachs says to buy these 29 cheap stocks set to generate higher earnings next year as interest rates and bond yields continue to rise

But interest rate volatility is unlikely to fade away anytime soon. The Cboe Interest Rate Swap Volatility index, which measures the implied volatility of Treasuries, was at its highest level since last March on Friday.

Even with a 2% 10-year yield, Goldman's Chief US Equity Strategist David Kostin believes that stock valuations should be able to digest such yields without too much difficulty.

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