Schwab's Vivienne Hsu says she's "defensively optimistic" about the market. Optimistic about technology and industrials; defensive about financials and consumer discretionary.
Her favorite stocks? A swimwear manufacturer and a steelmaker.
Hsu -- whose four-star Schwab Hedged Equity Fund is up an average of 10.73 percent per year over the last five years -- is very wary about financials.
"The light at the end of the tunnel will have to come when there's more clarity in the financial area," she told CNBC.
"Right now, we are reducing a little bit of our exposure in our underweights."
Swimwear maker Warnaco tops her list of favorites.
"We like it for its fundamentals," she said. "Warnaco's a turnaround story since 2003. It's been able to grow organically, so that's one of the big pluses."
She also likes AK Steel.
AK is the U.S.' third-largest integrated steelmaker.
Vivienne Hsu does not personally own either stock, but they are both in her fund.