Kass: Dangers of the Fiscal Cliff Overblown

NEW YORK (TheStreet) -- A fall from the fiscal cliff will impact "less than 1 percent" of the economy "so effectively no impact at all," said Doug Kass, founder of SeaBreeze Partners Monday on CNBC's Fast Money (to see the full interview, click here).

"Less than 1 percent means that the impact of a rise in dividend and capital gains are simply noise," he said.

He predicted a "50/50 chance" lawmakers will reach a "grand fiscal bargain." If that takes place, "you'll see a lift in production from inventory building from the first half of the next year."

Despite concerns, most investors are probably not aware of the tax implications of the fiscal cliff. "The calculation assumes that everybody has an equal level of sophistication, and we know that's not true," he said. "I would bet that 50 to 75 percent of people that own stocks in this country don't even know that tax rates are rising."

To see Doug Kass's complete prediction for how the fiscal cliff will affect the stock market and your investments, visit Real Money Pro.

This article was written by a staff member of TheStreet.