I believe that U.S. equity markets will do well in 2013 because of a few significant tailwinds.

The important one is the resurgence of the U.S. housing sector. Buoyant real estate prices should provide a decent lift to both the employment picture and to consumer confidence. (Read More: Pending Home Sales Rise 1.7 Percent, Beating Forecast.)

Additionally, positive developments in China and Japan could also provide fuel to the "risk-on" trade.

In addition to stocks, I also like gold and silver. These are inflation hedges, which is useful in light of a global central bank mentality of using accommodation as the first line of defense against a slowing economy. (Read More: Gold Steady Amid US Fiscal Drama.)

These developments should also support both crude and copper prices in the new year. I also expect the Canadian dollar to fare well in a commodity-driven risk trade.

At some point in the next few years, the U.S. runs a very real risk of having markets lose confidence in our ability to pay our bills, and this could cause an enormous sell-off in long-term treasuries. It's unfortunate that the timing of this occurrence will be very difficult to predict. Because of this, I will look at very cheap option strategies that will protect against sharp moves in long-end treasuries.

WTI has rallied in the face of a stronger dollar and weaker equities.

Although the dollar is up 0.19 percent and the equities are down 0.62 percent Friday morning, U.S. crude oil has held up around $91.

Thursday night we reached new swing highs up to $91.50. Government inventory data will be released on Friday and the American Petroleum numbers showed a much larger build in gasoline than expected. I will be watching gasoline data very closely, as demand has risen a bit, which could provide support for oil prices.

But what's really going on in WTI is a short-covering rally, as we have a year-end closure of positions. Most big traders I have spoken with simply want out of the market so they can cut risk. (Read More: Stock Shorting: CNBC Explains.)

With only four days left until the US economy faces the possibility of going over the "fiscal cliff," when tax increases and spending cuts are slated to go into effect, Wall Street is jockeying for position.

"Since the November low, the S&P futures have done very nicely. In the last couple of trading days, we got dinged on the downside and a lot of that has to do with the shenanigans in Washington," Ralph Acampora, senior managing director at Altaira Investment Solutions, told CNBC's "Futures Now." The VIX today is slightly higher than its November low, when the S&P 500 was at 1350, "so the fear is growing," Acampora said.

If the U.S. economy goes over the "fiscal cliff," bonds will remain a safe haven, Sean Egan of Egan-Jones Ratings Company said Thursday on CNBC.

"The assumption is that the U.S. has incredibly deep pockets, and even if it's downgraded a notch or a couple notches, it's still the safest place to be of all the alternatives in the developed market," he said on "Futures Now."

One potential headwind could come from interest rates starting to ratchet up once the economy picks up, but Egan said that wouldn't happen for another 12 to 18 months.

"I think there's a lot of tension being worked out," he added. "The biggest difficulty right now is the developing currency war whereby Japan is trying to devalue their currency over the next six months so they can help their export sector, and Europe is using massive monetary policy to help the weaker countries."

Tokyo is expected to push for stimulus and move toward weakening the yen in order to boost exports.

Egan cautioned against piling into the trade.

"I think you have a lot of things happening at once," he said. "I don't think the conclusion is that you can go into long-term Treasuries."

Investors would likely wait for less uncertainty before they move forward, Egan added.

As for the so-called "fiscal cliff," the series of tax hikes and spending cuts to take effect Jan. 1 if Washington lawmakers fail to reach a budget agreement, Egan said it was likely a deal would be struck in mid-January or later.

"Keep in mind that this is a prelude to a much bigger deal later in 2013, and it also reflects an ideological clash whereby the Republicans believe in lower taxes, lower government expenditures, and the Democrats believe in a redistribution of wealth and a fairer society," he said. "It's a much bigger deal than the one we're faced with right now."

Egan also said he believed that yields on 10-year Treasury notes would be higher next year.

"I think they'll probably be slightly higher because the economy will be better off," he said. "Housing is improving, and that is a major driver for economic growth. You look at most industries, they've improved over the past 12 months."

With many market participants uncertain about the future for a number of currencies, the looming 'Fiscal Cliff' is throwing more uncertainty into the mix.

Of course, the major safe haven asset for investors is Gold, which many traders see holding hold value better than most major currencies. This begs the question, will the precious metal's value rise or fall if Washington can't reach a compromise on the cliff? Vote in our Futures Now poll here and let us know what you think.

With gold hovering near a four-month low, even some of the yellow metal's most ardent fans have begun to sweat.

Just don't count Euro Pacific Capital's Peter Schiff among the Nervous Nellys.

The perpetual bullion bull and sworn enemy of central bankers everywhere told CNBC's "Futures Now" this past week that gold's recent sell-off is only temporary and that investors should be "patient enough to ride this thing out."

Gold, he said, is one of the few avenues available to investors as a store of value in a world where major central banks are determined to fight economic weakness with ultra-accommodative monetary policy.

"What are you going to do? You're going to hold dollars at zero percent with (Fed Chairman) Ben Bernanke promising to print until infinity?" the fierce Fed critic asked. "There's no currency that you can hold and be confident inits future purchasing power. But you can hold gold, you can hold silver."

Schiff added that people "could make a lot of money in gold and gold stocks if they are patient. But unfortunately there's money on Wall Street that's not patient, and I advise other people who understand the fundamentals" to stay put, he said.

Earlier in the week, noted gold bug Jim Rogers sounded a rare note of caution as gold suffered its deepest weekly loss since June.

Meanwhile, well-known investor John Paulson — whose flagship investment funds have had a brutal year – saw falling bullion take a toll on his gold fund, which has fallen 21 percent year to date. (Read more: John Paulson's Hedge Funds Weather Another Tough Month.)

Schiff said people originally invested with Paulson because he once had a "hot hand." Now, impatient investors are heading for the exits "because they don't understand the dynamics behind the market," he said.

Gold prices fell more than 1 percent on Thursday to hit their lowest in nearly four months after breaking through a critical support level on charts at $1,661 an ounce, weighed by year-end investor selling.

We've seen this show before.

Crude nearly touched $90, only to close 1.5 percent higher.

Why was the market so strong today? Well, there were a few reasons.

Brent oil rose towards $110 a barrel on Wednesday on expectations that a budget crisis in the United States will be resolved, heading off a recession threat to the world's top oil consumer.

World shares rose to 17-month highs, and the euro gained on growing confidence that a U.S. pact on spending and taxes will be reached before a year-end deadline, avoiding the so called fiscal cliff which threatened to tip the country into recession.

A German business survey that showed improving sentiment among investors cemented the more upbeat mood.

Brent crude was up 0.8 percent to around $110 a barrel. It was heading for its highest close in two weeks. U.S. light, sweet crude gained 0.4 percent to around $88 per barrel. (Read More: Is 2013 the Year of $50 Oil and $1,200 Gold?)

Stocks extended their gains Tuesday, lifted by energy and financials, as Wall Street remained hopeful that a deal would be made in Washington to avoid the "fiscal cliff."