It becomes more apparent that the U.S. economy is in the middle of a radical sea change, shifting from a domestic, consumer-based model to becoming ever more reliant on exports. Our country’s exports grew from $1.01 trillion in the second quarter of 2002 to $1.59 trillion in the second quarter of this year. China is growing at a 10% clip, emerging markets are strengthening, the dollar is weakening - while some fear the challenge, some see opportunity.
“We are utterly reliant on China,” Jeff Macke says. The only chance we have comes from having entirely free trade, and with China, we have to trade on their terms, he says. “We are dead if you take a protectionist attitude.”
Look for some of the tech names that are increasing their exposure in China, Guy Adami says. Hewlett-Packard (HPQ) is doing it and now Dell (DELL) looks to be, too.
Pete Najarian likes the big pharma names for having international exposure. Add on the usual names that benefit internationally like Boeing (BA) and United Technologies (UTX) and “those are your trades on the exposure.”
Defensive, tech-related companies that have huge multinational growth – “that’s the way you can win in this market,” Jeff Macke says.
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Trader disclosure: On July 27th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;Macke Owns (ATVI), (DIS); Najarian Owns ( C),(GS) SSusquehanna Financial Group Is A Market Maker In (GTRC), (ATVI), (AMZN), (ERTS), (INTC), (KYPH), (VMSI); Susquehanna Financial Group Owns More Than 1% Of (BZH); Gilbert Owns Options In (HOT) Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies