Your Buffett Moment

With stocks down substantially in 2008, could next year be the opportunity of a lifetime to get long?

That depends on how old you are. According to Fast Money trader Joe Terranova, if you’re born after 1976 opportunity is knocking. (Isn’t that always the case?)

Seriously, Terranova believes that anyone in their 20’s or their early 30’s should probably gobble up stocks; that this could well be your Buffett moment.


Because you’ll be the beneficiary of re-flation.

Here’s his thesis: It stands to reason that down the road the costs of food, housing and energy will all be higher. And young people have time on their side. So if you buy now, you’ll get in when stock prices are relatively low and go along for the ride.

In fact, Terranova thinks this could be a pivotal moment in history for young investors. He says the years ahead could be similar to the period between 1933-1937 when some of the greatest fortunes were made because people bought assets on the cheap and sold them later at a significant premium

Terranova’s Trade

So, if you’re in your 20’s or 30’s, Terranova advises crafting a long term portfolio made up of companies that will benefit as prices increase. However he says, "make sure you’re fully diversified among a group of asset classes over the long run."

Terranova recommends spreading that risk out among many sectors, including commodities, real estate, emerging markets, gold, natural resources and healthcare.

What’s the bottom line? If you’re from Generation Y start building a portfolio of stocks now and by the time you’re ready to retire you could be in good shape.

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Trader disclosure: On Dec. 11th, 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 (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (MSFT), (WMT), (MCD); Pete Najarian Owns (NUE), (FCX); Pete Najarian Owns (DRYS) And Is Short (DRYS) Calls; Pete Najarian Owns (SBUX) Calls; Pete Najarian Owns (UYG) Calls; Pete Najarian Owns (XHB) Calls; Finerman Owns (SRS), (MSFT); Finerman's Firm Owns (OIH) Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (BBT), (VNO), (SPG), (FCE.A), (COF), (USO)

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), (OFC), (DLR), (EXR), (IGE), (MAC), (DBC), (DBV), (SKT), (UA), (CLB); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights