"And so, I think you'll see more hedge funds migrating into equities. We're certainly seeing that on the margin," he said. "I would say risk-on."
The so-called fiscal cliff would trigger automatic federal spending cuts and see the expiration of the Bush tax cuts if Washington lawmakers fail to approve a budget.
So where are funds flowing?
(Read More: Fiscal Cliff: Complete Coverage)
"On the margin, it's still looks like it's going into high-yield and the mortgage-backed market on the margin," Scaramucci said. "We are seeing some people start to think about Europe and European distress, particularly on the corporate debt side. And that's why I think the equities are actually going to surprise people, because flows are still going fixed-income directionally, and so all you need is a little bit incremental more demand on the equities side to see the valuations go up."
Trader disclosure: On Nov. 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dennis Gartman is long GOLD; Dennis Gartman is short YEN; Dennis Gartman is short Euro; Dennis Gartman is long S&P; Dennis Gartman is long AUD; Tim Seymour is long BAC; Tim Seymour is long SBUX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long WMT; Karen Finerman is long M; Karen Finerman is long JCP; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Steve Grasso is long ACI; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long BTU; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN.
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