Eat The Rich

It’s looks like fewer people are living the lush life. Saks , the retailer of the rich, reported a wider-than-expected loss for the second quarter and forecast weak same-store sales growth in the second half.

But that’s not all, New York magazine writes that the previously thriving nanny business has all but dried up due to widespread layoffs and shrinking bonuses on Wall Street.

And don't go thinking that the rich are taking solace on their yachts with martinis in hand. Sales of luxury watercraft are down forcing Olympic Boat Centers (which is based in Microsoft’s home town of Redmond, WA) to file for bankruptcy protection.

What’s the luxury trade now?

Both Karen Finerman and Guy Adami think the play is Tiffany’s but both also say to wait for more of a pull back.

Pete Najarian thinks Harley Davidson is worth a look. “Talk about discretionary,” he says.

Jeff Macke thinks it's all hogwash. Luxury is a weak dollar trade and with the dollar getting stronger, the trade is over.

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Trader disclosure: On Aug 19, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (AGU), (BTU), (GS), (INTC), (MSFT), (NUE); Macke Is Short (TM); Macke Owns (MSFT), (WMT), (DIS), (CY); Najarian Owns (AAPL) And Is Short (AAPL) Calls; Najarian Owns (CSCO) Call Spread; Finerman Owns (GS); Finerman's Firm And Finerman Own (C) Leap; Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO); Finerman's Firm Is Short (SPG), (COF), (IYR), (IWM), (IJR), (SPY), (MDY), (BBT)