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Four Market Fear Factors: Blackstone’s Wien

Wednesday, 21 Nov 2012 | 1:21 PM ET

Four factors will continue to drag on the economy for 2013, Blackstone Advisory Partners Vice Chairman Byron Wien said Wednesday on CNBC.

Earnings, the so-called "fiscal cliff," tensions in the Middle East and the ongoing crisis in Europe were all likely to make next year worse than 2012.

"They're not predictions. They're surprises," he said on an interview on "Fast Money."

Four Market Fear Factors: Byron Wien
Surprises will continue to drag on the economy for 2013, says Blackstone Advisory Partners Vice Chairman Byron Wien.

The "fiscal cliff" would trigger automatic federal spending cuts and expiration of the Bush tax cuts on Jan. 1 if Washington lawmakers fail to agree on a budget.

(Read More: Even Muni Bonds May Be Targeted in 'Fiscal Cliff' Talks)

Additional quantitative easing won't help, either, Wien added.

"I don't think the Fed could fix it," he said. "Monetary policy has done its job."

GDP growth next year could see, at best, 4 percent growth next year.

Although the "fiscal cliff" could "take it down to zero," Wien said it was more likely that it was more likely to hold growth to 1½ percent — before inflation takes 1 percent off the top.

(Read More: Whitney Tilson: 'I Love the Fiscal Cliff')

"That's not very much, and I think earnings are going to struggle in that environment," he said.

Wien revealed where he looked to invest.

"I would continue to focus on the growth areas, pharmaceuticals and technology," he said. "And there are opportunities in higher-yield instruments, too."

Among Wien's top investment instruments were fixed-income, mortgages and high-yield corporate debt.

Trader disclosure: On Nov. 21, 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 STX; Jon Najarian is long HPQ; Jon Najarian is long AAPL; Jon Najarian is long GS; Jon Najarian is long JPM; Jon Najarian is long FB; Jon Najarian is long PHM; Jon Najarian is long WMT; Jon Najarian is long TJX; Jon Najarian is long ESV; Jon Najarian is long XHB; Jon Najarian is short puts in GLD; Jon Najarian is short puts in AGQ; Jon Najarian is short puts in SLV; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Jon Najarian is long GLUU; Stephanie Link is long AAPL; Stephanie Link is long WFC; Stephanie Link is long SBUX; Stephanie Link is long WY; Brian Kelly is long QQQ; Brian Kelly is long XLK; Brian Kelly is long BOIL; Brian Kelly is long NAT GAS; Brian Kelly is long JJG; Brian Kelly is long GLD; Brian Kelly is long SLV.

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