It’s worth noting that both Fast Money traders also believe that market is at an inflection point – and they say investors need to prepare for the worst, even as they hope for the best.
“I also have a large position in cash,” reveals Baker
“I’m hedging,” adds Terranova. And Terranova says retail investors should do the same either by selling mini S&P futures or using options or some other financial instrument.
Read More:
>Wall Street History: Why Are Pessimists Called Bears?
> Wall Street History: Why Are Optimists Called Bulls?
>NEW SLIDESHOW: Learning from the Legends:Simple Strategies Behind Supersized Successes
Posted by CNBC's Lee Brodie
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On June 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HAYG; Joe Terranova is short June Mini S&P Futures; Simon Baker is long C; Simon Baker is long GLD; Simon Baker is long JOYG; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA
For Jeff Kilburg
Jeff Kilburg is long GLD
Jeff Kilburg is long GDXJ
For Meredith Adler
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services in the past 12 months from DG
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services in the past 12 months from DLTR
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from DG
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from DLTR
The following companies have been an investment banking client of Barclays: DG
The following companies have been an investment banking client of Barclays: DLTR
For William Katz
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from BK
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from LM
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from SCHW
The Firm is a market maker in the publicly traded equity securities of SCHW
The Firm is a market maker in the publicly traded equity securities of AMTD
For Keith McCullough
Keith McCullough is long XLU
Keith McCullough is short XLI
CNBC.com with wires.