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.