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Following on the rebalancing of S & P indexes last week, on Friday the Russell indexes will do their annual rebalancing. FTSE Russell also has a vast suite of products indexed to benchmarks like the small-cap Russell 2000 , the large-cap Russell 1000 , and the Russell 1000 Growth and Value indexes. FTSE Russell estimates that about $12.1 trillion is currently benchmarked to the FTSE Russell indexes. On average, about 12% of the Russell 2000 (about 242 stocks) turns over every year since 2006, according to FTSE Russell. This year, about 15% of the Russell 2000 will turnover, and about 2% of the Russell 1000, according to Wells Fargo.
Persons: Russell, It's, Wells Fargo, Chris Harvey, Mike O'Rourke, Wells Fargo's Harvey Organizations: Russell, Technology, Apple, Microsoft, Nvidia, Investors, Netflix, Google, FTSE Russell, Jones, Amazon Locations: Wells Fargo, Freeport McMoRan .
Fund manager Brian Arcese also believes the U.S. is headed for a recession — albeit one that is milder than the devastating global financial crisis of 2008. Investors who want to be "recession proof" should have a balanced portfolio, he added. "A balanced portfolio is one that is practical and designed to be all-weather," said the portfolio manager at Foord Asset Management, who co-manages the Foord International Fund and the Foord Global Equity Fund. He likens his strategy to a barbell approach of growth-oriented names and value stocks, as well as stocks that fall in between the growth and value spectrum. The fund is down 5.8% as at end-September — beating the global stock market, which declined 25.2%, according to the fund's commentary.
Semiconductor and growth stocks have tanked this year, bonds are underwater and even the S & P 500 is in a bear market. Many investors hold on to loss-making positions taking on "emotional pain" in the process, according to the portfolio manager. "The best investors in the world probably are right 60-70% of the time," Arcese told CNBC, speaking from Singapore. Stock picks The fund manager named three stocks that will "will work, kind of, in any type of economic environment" — UnitedHealth Group , Air Products , and Freeport McMoRan . Air Products, an industrial chemicals company, is an inflation hedge and an "incredibly defensive company," according to Arcese.
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