And China is a major player in this sector. “They generate 37% of global aluminum demand, 42% of global copper demand and 57% of global iron ore demand. This is something to be concerned about,” Seymour says.
What should you do?
If you must play EM and you’re portfolio is commodities heavy, Seymour says diversify.
”I’d play the financials and interest rate sensitive stocks that will benefit from central banks around the world easing.”
Specifically he recommends Brazil banks such as ITUB or BBD , “Brazil’s economy is fairly insulated and should be defensive if China really slows down.”
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Trader disclosure: On Dec 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long AAPL; Seymour is long BAC; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns INTC; Adami owns AGU; Adami owns NUC; Adami owns BTU; Terranova is long ; Terranova is long SU; Terranova is long CAT; Terranova is long CNI; Terranova is long LQD; Terranova is long MUB; Terranova is long IBM; Terranova is long EMC; Terranova is long SWN; Terranova is long SBUX; Finerman is long AAPL calls; Finerman is long BAC; Finerman is long GLW; Finerman’s firm is long AAPL; Finerman’s firms is long JPM; Finerman’s firm is short IBM calls; Finerman’s firm GLW; Nations is long SPY; Nations is long C
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