Nonetheless, the earnings cliff is still an overriding concern of mine, and it limits the upside to U.S. equities.

Investment Conclusion

The risk/reward ratio has improved for equities, but the risk/reward ratio for my short bond position might have improved even more. With business picking up in the U.S. and China coupled with the possibility of less fiscal drag in 2013 -- the ingredients for an earlier-than-expected inc
At the time of publication, Kass and/or his funds were long TBT common and calls, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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