Tim said he believes Europe is on board with the rate cut cycle, but emerging and commodity central banks are not. His favorite trades in this new dynamic are getting long gold and Brazil by either investing in the country’s banks or through the Brazil ETF (EWZ). Brazil is a better resource play than any other nation, Tim said, including Russia, and it has a bigger demographic consumer story to go along with it.
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Trader disclosure: On Sept. 18, 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 (INTC); Pete Najarian Owns (XLF); Pete Najarian Owns (GS) Options; Pete Najarian Is Short (ETFC); Finerman's Firm & Finerman Own (HD); Finerman's Firm Owns (ASD), (AA), (COP), (TXI), (TGT), (MO), (NMX); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (WMT); Gartman Owns (YZC); CIBC Gartman Index Owns Crude Oil, Gold, Wheat, Is Short the Dollar against the Canadian Dollar and the Euro