Washington may be "dysfunctional," but lawmakers and the president will reach a debt-reduction deal to solve the "fiscal cliff," Legg Mason Capital Management's hief investment strategist says.
Michael Mauboussin, who is attending Charles Schawb's Impact 2012 investor conference, told CNBC's "Squawk Box" on Wednesday that leaders realize something has be done. Automatic spending cuts and tax hikes take effect Jan. 1 if no deal is reached by then.
"I think this is one everyone recognizes we have to do something," he said. "It may be something temporary until we get a solution ironed out, but I suspect we will get through this the next couple of months."
Skepticism aside, Mauboussin said Legg Mason remains optimistic about the stock market and the economy.