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Angela Merkel Just Told Investors, Buy Multinationals: Jon Najarian

On Friday investors were wondering if bulls were off to the races, after the latest overseas developments suggested that EU crisis had finally turned a corner.

Euro zone leaders shocked world markets with an agreement to allow rescue funds to be used to stabilize the region's banks. Details of the agreement, however, remain to be worked out.

Nonetheless, “This signals a big change from Germany,” explains top hedge fund manager Anthony Scaramucci, managing parting of SkyBridge Capital.

Prior to this announcement, investors didn’t think German Chancellor Angela Merkel would soften Germany’s stance on austerity.

Scaramucci tells us that his hedge fund peers are interpreting developments as “a clear signal that Germany wants the EU to remain intact.”

And Scaramucci says it’s a major development because Germany holds the fire power. And it suggests Germany won't press for austerity measures that fling Europe into a terrible recession.

“Now, you can start to believe that Europe is getting fixed,” says trader Patty Edwards, principal, Trutina Financial.

Trader Jon Najarian, co-founder OptionMonster.com, says if you have a long-term time horizon this is a giant buy signal. “It puts multinationals back into play,” he says. “I’d start building big positions in multinationals right now – names you feel will benefit from a recovery in Europe. Personally, I’m a buyer of Tiffany .”

Patty Edwards, who tends to be more risk-averse than Najarian, agrees but suggests buying dividend yielding stocks such as Altria . In the near-term she thinks investors seek yield rather than very high risk assets.

And on a related note, she says, you might want also want to put Fossil on your radar. "They're very Europe-centric."

* It’s important to note that Najarian's trade involves a time horizon of 6 months or more. If you’re a trader who moves in and out of positions with aplomb, Najarian says the short-term trade is sell the news. “If you’re nimble– take profits. Developments in Europe won’t help the upcoming earnings season, which will probably follow Nike's lead and show weakness.”

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Posted by CNBC's Lee Brodie

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Trader disclosure: On June 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long IBM; Anthony Scaramucci is long NKE; Anthony Scaramucci is long T; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long FB CALLS; Pete Najarian is long MSFT; Pete Najarian is long NOK; Pete Najarian is long NKE CALLS; Pete Najarian is long PEP; Patty Edwards is long for clients AAPL; Patty Edwards is long for clients GLD; Patty Edwards is long for clients INTC; Patty Edwards is long for clients COST; Patty Edwards is long for clients SBUX; Patty Edwards is long for clients AMZN; Patty Edwards is long for clients FB; Patty Edwards is long for clients MSFT; Patty Edwards is long for clients WFM; Patty Edwards is long for clients NKE; Patty Edwards is long for clients VZ; Patty Edwards is long for clients T; Patty Edwards is long for clients CTSH; Patty Edwards is long for clients PVH; Patty Edwards is long for clients CBI; Patty Edwards is long for clients BGS; Patty Edwards is long for clients MCD; Patty Edwards is long for clients MO; Patty Edwards is long for clients CTL; Patty Edwards is long for clients BKCC; Patty Edwards is long for clients AGNC; Patty Edwards is long MCD; Jon Najarian is long call spreads in NKE; Jon Najarian is long call spreads in TIF; Jon Najarian is long call spreads in CSCO; Jon Najarian is long call spreads in EFA; Jon Najarian is long call spreads in MMR; Jon Najarian is long call spreads in PBR; Jon Najarian is long call spreads in MNST; Jon Najarian is long call spreads in GRPN; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is long DDMG

For Macneil Curry
Nothing to Disclose

For Whitey Bluestein
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CNBC.com with wires.

Symbol
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FOSL
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MO
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NKE
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TIF
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