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Gaming America's Stocks: Bet On USA?

If you’ve lost your way in this stock market mayhem perhaps what you’re seeking is no further than in your own backyard.

We know Dorothy said something like that at the end of “The Wizard of Oz,” but more important “The Oracle of Omaha” said something like that on Friday.

Specifically in a New York Times editorial titled Buy American. I Am, Warren Buffett revealed that he has been moving his personal investments from safe U.S. treasury bonds into U.S. stocks.

"If prices keep looking attractive, my non-Berkshire net worth will soon be 100 per cent in United States equities," he wrote.

"To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions," he wrote. "But fears regarding the long-term prosperity of the nation's many sound companies make no sense.”

“These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, 10 and 20 years from now."

Buffett isn’t the only one who thinks stocks are cheap. So does Steve Cortes, president of Veracruz LLC. He tells Fast Money, “I couldn’t agree more with Buffett. I think this could be the greatest opportunity in the history of Wall Street,” he says on Fast Money. “Capital and talent have never been cheaper, and they are looking for a home.”

As you might know, Buffett won’t reveal what he’s buying personally, so we hit up Steve Cortes for some thoughts on how to trade this market.

The Trades

“Right now I’d avoid companies with too much international exposure," he says, due to a belief the dollar will get stronger. One such company to avoid is ManPower . "Although they're US based less than 10% of their revenue comes from the U.S. I had been short but I’m not right now."

As a buy, I particularly like Occidental Petroleum because they are a domestically oriented energy company whose revenue comes mostly from inside this country.

Steve’s talking my language, adds Joe Terranova. If you want another name look at Potash . That stock is beaten down.

I’d look at Chesapeake, adds Pete Najarian. From the real estate alone I think valuations are attractive.



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Trader disclosure: On Oct. 17, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Karabell Owns (AAPL), (CSCO), (GOOG), (JPM), (MS), (SLB); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOV), (UNH), (DVN), (WLP); Finerman's Firm Owns (DNA_ Call Spreads: Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (USO), (BBT), (COF); Najarian Owns (AAPL) And (AAPL) Call Spread; Najarian Owns (AMD) Puts; Najarian Owns (CHK) And Is Short (CHK) Calls; Najarian Owns (HAL) And Is Short (HAL) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (YHOO) Calls; Najarian Owns (MGM) And Is Short (MGM) Calls ; Najarian Owns (UNG); Terranova Owns (AAPL), (EXM), (FCX), (FTO), (MA), (NOV), (POT), (X), (VLO)

GE Is The Parent Company Of CNBC

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW), (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC), (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.

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