'Fast Money' Recap: Crisis Investing

Tim Seymour says, "I need to see volatility in emerging-market currencies come down dramatically before I can get comfortable about going into places where I think there is a great long-term story." Macke told viewers he's long the dollar through the PowerShares DB US Dollar Index(UPP Quote) and short the S&P 500 with the ProShares UltraShort S&P 500(SDS Quote).

Ratigan asked the crew if we have come to terms with the debt and housing problems. Finerman says "we aren't there yet, but there are some companies out there where you can pay nothing and get the rest of their business for free."

Adami said companies like Johnson & Johnson(JNJ Quote), Church & Dwight(CHD Quote) and Celgene(CELG Quote) have "done it right" but been unfairly punished. Najarian mentioned that Amgen(AMGN Quote) rose 15% on the week and reported unbelievable earnings.

Pimco Spots Value

The traders spoke with Mohammed El-Erian, Pimco co-CEO and CIO, about his view on how we get out of the credit crisis. El-Erian explained that we got to where we are today because there was structural failure at every level, combined with a global deleveraging process that caused major damage. He told viewers to look for high-quality names that were damaged by the overall environment but are likely to recover. He says "we are starting to form a bottom in this market, and there is starting to be some good value here."

El-Erian said he feels more "optimistic" than in the past, because we are starting to see the final stages of the deleveraging and we are starting to see policy go from "announcement" to "implementation." Finerman told viewers that Freeport McMoRan(FCX Quote) is trading at two times cash flow and is overdone on the downside. She also mentioned that RTI International(RTI Quote) is trading at one times net cash flow.

Rude Crude

Joe Terranova joined the traders to discuss the energy markets. He said crude oil is trading off the S&P 500 futures and is coming into a near-term bottom. He says "we're running out of sellers, and if you're short oil it might be time to cover." Seymour suggested that crude oil is simply following the dollar. He says "technically, support for oil is good around $62, and fundamentally the argument is decent when you look at demand." Terranova explained that hedge funds just aren't as actively involved in trading crude oil now. He says "there is nobody in there to drive it higher now."

Bear Battle

The gang talked about ways to battle the bear market. Adami explained that gold isn't working, but the infrastructure story will work at some point. Seymour recommenced viewers play gold names Gold Fields(GFI Quote) and Harmony Gold Mining(HMY Quote).

Najarian says "some of tech names with large cash positions like Microsoft, Apple(AAPL Quote), Intel(INTC Quote) and Dell(DELL Quote) will work. He also mentioned the Market Vectors Gold Miners ETF(GDX Quote) saw huge options activity and could bounce to the upside from current levels.

Final Trade

Macke said stay long the dollar with the PowerShares DB US Dollar Index. Adami picked Cisco Systems(CSCO Quote). Finerman selected Phillip Morris(PM Quote). Najarian recommended the Market Vectors Gold Miners ETF.