Find Less Obvious Liquidity Pools: Goldman Exec

According to an industry report, five percent of all securities, ETFs (exchange-traded funds) and stocks, now represent 90 percent of all market volume.

This is a staggering statistic. So, with the vast majority of investors trading very little, how do you navigate this market?

"History can be a guide. But in the new world, history may give you some wrong signals along the way," Steve Barry, chief investment officer of Goldman Sachs Asset Management, told CNBC's "The Strategy Session" on Tuesday.

The key is to "find liquidity pools that might be less obvious, outside of traditional exchanges," Barry said, adding, "and to build up what we think the absolute global economic growth will be."

"We are hearing low probability of a double-dip, continued focus on costs and looking for growth wherever it may reside, which could be outside the U.S. We have to think more globally," he said.

And with so much uncertaintystill looming over the market, the Goldman executive is keeping portfolios "well-balanced across all of its strategies."

For this reason, the company has developed both a tactical response and strategic response to the market environment, with a focus on the fundamentals.

Barry said there are three core elements to analyze a business:

  • What is the market share position?
  • What is there competitive dynamics?
  • Are they a price-taker or price-receiver?

The bottom line is for buisnesses to "keep costs under control, maybe have some growth margin degradation, get some leverage through your income statement—[then] you should be able to make your numbers," Barry said.