Guy Adami wants to be in Goldman Sachs (GS) ahead of a rate cut. It will be “wind at their back,” he says.
But with a rate cut would come, almost assuredly, a decline in the U.S. dollar. Constance Hunter says one way to hedge that risk is to own the WisdomTreeInternational Financial (DRF), which is an ETF of international financials. If the Fed cuts and the dollar drops, the DRF could give investors some “extra juice,” she says.
Jeff Macke wouldn’t buy anything related to the financials yet. He thinks a Fed cut has already been priced into the market and the “financial trade is over.” He’s sticking with big-cap tech.
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Trader disclosure: On Aug 21 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Macke Owns (INTC), (ATVI), (EMC); Najarian Owns S&P Puts; Constance Hunter Is The Founder And Owner Of Coronat Capital Management; Coronat Capital Management Owns (INFY),(H&M), (USO); Coronat Capital Management Owns Yen; Coronat Capital Management Owns VIX Options; Coronat Capital Management Is Short (FXI); Coronat Capital Management Is Short (EWH) But Owns Local-Listed Hong Kong Shares