This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $110.95 3.00%
FB $89.23 2.30%
GOOG $608.50 1.80%
TSLA $243.80 2.20%
YHOO $31.68 0.25%

Markets

Chart of I:DJI
DOW 16,267.50 +209.15 1.30%
S&P 500 1,933.58 +19.73 1.03%
NASDAQ 4,698.3230 +62.2180 1.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs