Go Big or Go Home

Wednesday, 2 May 2012 | 6:28 PM ET

If you’re looking to put money to work, Bank of America says go big or go home.

According to the BofA analyst team, look for mega-cap stocks to become the leadership group in late 2012, going into 2013.

They say the so-called Nifty 50 (that is, the 50 largest stocks by market cap) are poised to break out versus the rest of the large cap space.

Should you follow BofA into the Nifty 50?

Whole Foods Record Quarter & Trading the 'Nifty Fifty'
CNBC's Jane Wells reports the latest details on Whole Foods' earnings from its conference call and the Fast Money traders have the play on trading mega-cap stocks as the top 50 S&P stocks reach new recovery.

Both Brian Kelly and Karen Finerman think the play makes a lot of sense.

"The Nifty 50 are fairly diversified so Europe shouldn’t harm these stocks disproportionately if something negative develops," says Kelly. “Also, they tend to have a lot of cash. I can see putting money to work here.”

And Finerman adds, the valuations are largely attractive. "Google , for example, is trading too cheap," she says. And Finerman thinks if the economy takes a sharp turn for the worse, these stocks will probably attract money as defensive dividend payers.

Trader Dan Nathan just can’t get on board.

“There are a whole lot of companies in the Nifty 50 that get a big piece of revenue from Europe,” he says, “and I think we’re moving into a period of uncertainty. The latest data out of Europe doesn't look so good.”

* You can find our conversation about trading the Nifty 50 about 3 minutes into the video clip above.

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Trader disclosure: On May 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Dan Nathan is long AAPL JAN 450 PUTS; Dan Nathan is long BAC MAY 7 PUTS; Dan Nathan is long MS MAY 16/14/12 PUT FLY; Dan Nathan is long RIMM JAN 20/25 CALL SPREAD; Dan Nathan is long CHK MAY 16 PUTS; Karen Finerman is long AAPL; Karen Finerman is SHORT AAPL CALLS; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM CALLS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Brian Kelly is long IWM; Brian Kelly is long QQQ; Brian Kelly is long SPY; Brian Kelly is long KRE; Brian Kelly is long USG; Brian Kelly is long CAD DOLLAR; Brian Kelly is short SWEDISH KRONE; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long INTC CALLS; Pete Najarian is long YHOO; Pete Najarian is long INTC ; Pete Najarian is long INTC CALLS; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long SBUX CALLS; Pete Najarian is long PEP; Pete Najarian is long INTC; Pete Najarian is long FIO; Pete Najarian is long VISA CALLS; Pete Najarian is long STX CALLS; Pete Najarian is long MS; Pete Najarian is long MS CALLS; Pete Najarian is long TJX CALLS; Pete Najarian is long XCO CALLS

For Randall Kroszner
Nothing to disclose

CNBC.com with wires.

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