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Should You Go Nuts Over Brazil

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All this week we are taking our webcams around the world, visiting places that we otherwise couldn't easily reach. On Thursday we check in with Brazil.

It’s not just supermodels and demand for corn that has Brazil's economy rocking. You can thank China and other emerging markets, too.They're clamoring for Brazil's huge supplies of other natural resources from iron ore to soybeans.

But other factors are at work too. Key among them: the government is getting it's financial house in order - reducing debt, taming inflation and strengthening its currency. That has helped the Brazilian stock market more than triple since 2003.

To be sure..there are risks. In one day earlier this month, Brazilian stocks fell as much as 9%. Still, your global portfolio may be missing out if it doesn't have a small piece of Latin America's largest economy.

Claudio Junior joins the panel for this conversation from Sao Paulo, Brazil. He works at Ericsson as a Financial Analyst of projects.

What’s your sense of Brazil’s economy?

I think the economy is working because national debt is low and inflation is under control says Junior. Also international trade is positive and we’re receiving a large amount of trade dollars.

Is the success of Brazil tied to commodities?

I think commodities were important in the past, but today we see that domestic demand is growing, says Junior. The dependence on commodities are getting less and less. This year GDP in Brazil is estimated to grow at 4.7%.

Dylan Ratigan asks the guys what they think of the iShares MSCI Brazil Index (EWZ).

Guy Adami says it’s a buy.

Carter Worth says play it for a bounce.

Pete Najarian thinks it’s a hold because he’s seeing heavy put action in EWZ. That concerns him.

Jeff Macke recommends selling.


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Trader disclosure: On Aug 23 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 (DIS), (ATVI), (HAS); Najarian Owns (GS) Puts; Najarian Owns S&P Puts; Oppenheimer & Co. Inc. Is A Market Maker In (MRVL)