Large caps with international exposure are the best way to get through the rough patch, according to Schwab portfolio manager Vivienne Hsu. Knowing the right large caps with the correct international exposure is the key.
Her four-star Schwab Core Equity Fund is up an average of 9.9 percent per year over the last five years.
Her list begins with Hasbro .
""The consumer discretionary sector can be a bear to navigate through," she admitted to CNBC. "We like Hasbro more on a top-down perspective; there is a likelihood that...consumers may be trading expensive entertainment for low-cost entertainment, such as board games, hand-held devices."
She also likes Occidental Petroleum.
"Everybody knows oil is getting a little toppy," she said. "We like Occidental, on the other hand, because of very, very strong fundamentals."
She praised the company's ability to generate free cash flow and its record on increasing its dividend and cutting its debt.
Also on her list is IBM.
Vivienne Hsu owns Hasbro, Occidental Petroleum, and IBM through her fund.