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Power Play: Protection from China's slowdown

An employee inspects an OnePlus X smartphone at the OnePlus manufacturing facility in Dongguan, China.
Qilai Shen | Bloomberg | Getty Images
An employee inspects an OnePlus X smartphone at the OnePlus manufacturing facility in Dongguan, China.

The Dow and the S&P 500 are down 6 percent since the beginning of the year and the Nasdaq is down 8 percent on concerns that a slowdown in China will hurt the global economy.

Richard Weiss, senior portfolio manager at American Century Investments, tells CNBC's "Power Lunch" on Thursday he is tactically reducing positions outside of the United States.

"Various issues [are] weighing on the markets currently, including Chinese economic and financial uncertainty. Ripples and reverberations could pull Europe and even the U.S. south given how weak euroland growth is," Weiss said.

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Weiss has been taking a more defensive approach to his investment strategy. "We are not simply blindly 'buying on the dips' [and] we use VIX insurance in times like these to buffer the downside," Weiss said.

Brad McMillan, chief investment officer for the Commonwealth Financial Network, is a little more optimistic. "Further downside quite possible, but 2016 is most likely not 2008," McMillan said.

China is still growing in McMillian's view and that is contributing to global growth. McMillan also sees the U.S. savings rate as a positive factor.

"We are getting close to a peak savings rate, meaning spending growth may well accelerate even further. Don't go against the American willingness to spend," McMillan said.

One of the sectors McMillan likes is consumer discretionary, which is higher during trading.