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Market Not a Risk-Off Scenario: Pro

The stock market will end the year strong, following a resolution of the so-called "fiscal cliff," Thomas Lee, chief U.S. equity strategist at JPMorgan, said Thursday on CNBC.

On "Fast Money," Lee said that stocks are largely pricing in potential effects of the tax hikes and federal spending cuts that would go into effect if Washington lawmakers fail to strike a budget agreement.

"We don't expect us to actually fall off the 'cliff,'" he said, adding that about one-third of the "cliff" is realized and is already reflected in GDP forecasts.

Sitting out the market could be the wrong move, Lee said.

"That's a scenario that's not going to justify investors being risk-off and sitting on the sidelines, but the time to recognize that scenario is not going to happen toward the end of the year," he added.

"So I still have this vision of investors being cautious, we get developments, and as we get late into December, we get some resolution, the market's going to finish pretty strongly. Hopefully, investors are positioned on the right side of that."

Lee said that he viewed the market as being on a secular bull run since 2009.

"To us, the thing that really ends bull markets are recessions, not, 'Are people too bullish or too bearish?' So we're comfortable that what we're really going through is a morass because of Europe and China, and now the 'cliff' is really causing some loss of visibility, but it's really this durable goods story in the U.S. led by housing that's going to strengthen 2013," he said.

Trader disclosure: On Dec. 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long SBUX; Stephanie Link is long BRCM; Stephanie Link is long SLB; Stephen Weiss is long BAC; Stephen Weiss is long SCCO; Stephen Weiss is long CNX; Stephen Weiss is long QCOM; Stephen Weiss is long FXCX; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long YUM; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Dennis Gartman is long AUSSIE DOLLAR; Dennis Gartman is long S&P; Dennis Gartman is long NAT GAS; Dennis Gartman is short YEN; Dennis Gartman is short Euro; Dennis Gartman is short CRUDE; Dennis Gartman is long C.

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