A down stock market as the result of "fiscal cliff" fears are a boon for the long-term investor, Alec Young of S&P Capital IQ said Friday.
"Frankly, the worse it gets here, the better, because it means I get to buy stock cheaper. The 'cliff' is all about when do you get long," he said.
On "Fast Money," Young said that timing was the biggest, immediate variable for long-term investors.
"The risk-reward is pretty nicely set up for risk assets into 2013," he said. "It's just a question of do you jump in now, or does the 'cliff' give you a better buying opportunity next month?"
Absent a budget agreement in Washington, the U.S. is set to go over the "fiscal cliff," a series of tax hikes and spending cuts on Jan. 1.
Young said that a "mini-deal" was likely, which would help boost the stock market to recent highs – around 1,450 for the S&P 500.
The federal debt ceiling, however, would need to be extended, he added.
"I think that needs to get worked out before we break out to a new recovery high above the Sept. 14 high of 1,474," he said.
Young said several factors informed his 1,550 target for the S&P next year.
"We think the terrible value in the Treasury markets is bullish for equities. Obviously, cash isn't much of an option," he said. "You put it all together, and we think a high single-digit-type year is likely for stocks next year."
