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Kashkari Buying Into ‘Fiscal Cliff’ Risk

Washington's budget impasse was really "more of a hill," making it time to buy into a stock heavily exposed to the so-called "fiscal cliff" risk, PIMCO Head of Global Equities Neel Kashkari said Thursday on CNBC.

On "Fast Money," he defended his bullish position on defense contractor General Dynamics.

Calling it one of the "great defense companies," Kashkari also liked General Dynamics' exposure to the ultra luxury market in its Gulfstream jet business and emerging markets. A strong balance sheet and shares trading around 10 times earnings rounded out his reasons.

"We like its long-term fundamentals," he said. "We don't think it's a short-term flip."

Ahead of the "fiscal cliff" budgetary deadline that would trigger tax hikes and sharp federal spending cuts on Jan. 1, Kashkari said he believed a deal would be struck.

"We don't actually think sequestration is likely to hit," he said, using the term for budget cuts in defense spending.

"Remember, the 'fiscal cliff' is not a cliff. Even if we come to Jan. 1, it's more of a hill. And they actually have a little bit more time than people are giving them credit for, and that's why I think the markets are not overreacting right now."

Investors would likely see increasing volatility as the year comes to a close without a budget agreement. (Read More: Apple May Fall Another 20% on 'Panic Selling': Analyst)

"That could be buying opportunities for all of us that have some dry powder for which to deploy," he said. "We don't think defense spending cuts are coming anytime soon."

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: JON NAJARIAN IS LONG APPL; JON NAJARIAN IS LONG JPM; JON NAJARIAN IS LONG FB; JON NAJARIAN IS LONG CME; JON NAJARIAN IS LONG CBOE; JON NAJARIAN IS LONG GLUU; JON NAJARIAN IS LONG STSI; DAN NATHAN LONG ON WFC; DAN NATHAN LONG ON YHOO; DAN NATHAN LONG ON MSFT; DAN NATHAN LONG ON RIMM; KAREN FINERMAN LONG AAPL; KAREN FINERMAN LONG BAC; KAREN FINERMAN LONG JPM; KAREN FINERMAN LONG WMT; KAREN FINERMAN LONG TGT; KAREN FINERMAN LONG MSFT; KAREN FINERMAN LONG GOOG; KAREN FINERMAN LONG M; KAREN FINERMAN LONG RLGY; KAREN FINERMAN LONG MHP.

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