It's become very important to dominant franchises, whether US-based or European-based, to embrace globalization, Steve Barry, the CIO of Goldman Sachs Asset Management, told CNBC today.
It's a "tug-of-war right now" between companies expanding globally and those that remain focused on their home turf, Barry believes. He says the winner of this economic "war," so far, is the technology sector.
Even most emerging economies are not starting at the bottom, they are "leap frogging" over where we [the US] were, he said, referring to the ways technology is driving incredible growth in some parts of the world.
This dynamic is helping many American companies, especially in the "supply chain where there is a lot of intellectual property that can't be easily duplicated," Barry added.
The real fuel right now is "uncertainty," Barry said, "that needs to be embraced in the marketplace because it's unclear what the future holds."
For that reason, he recommends doing "what if" scenario analysis—putting "different stress tests at the top line."