Stay long stocks through taper: Strategist

The Federal Reserve's reduction of asset purchases will signal a stronger economy, which will be good for stocks, CommonFund Chief Investment Strategist Michael Strauss said Thursday.

"Stay calm here and look at the taper, look at the reasons why it might occur," he said. "If it's because the economy's doing a little bit better, that's actually a good thing."

On CNBC's "Fast Money," Strauss urged a historical perspective.

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"Don't look back at 1994," he said. "Look at what happened at the summer of 2003. During that period the Fed ended their easing process. Ten-year interest rates adjusted about 140, 150 basis points. The equity market had a little bit of a tug-of-war but ultimately moved higher because the economy was doing better."

Strauss said that he saw signs of an improving economy.

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"I think you're seeing some clear signs in areas such as the industrial sector, the housing sector," he said, adding that jobs and auto sales were also positive.

Strauss said that even rising interest rates aren't likely to quash the housing recovery.

"You're not seeing a big sensitivity in the back-up in interest rates in part because mortgage rates on a 20-, 30-year, 40-year historical basis are still very, very low," he said. "And what you're also seeing is the need to replenish depleted inventory."

(Read more: Trading the taper tantrum in stocks)

Strauss also said that investments geared to a long-term cycle were preferable.

"Invest in more of a longer-term cycle than a short-term cycle. Teen retailing trends are a very short-term cycle," he said. "I'd must rather invest in areas and sectors of the market that had a long-term cycle."

— By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Patricia Martell contributed research to this report.

Trader disclosure: On Aug. 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long VRTS; Joe Terranova is long OXY; Joe Terranova is long TRV; Joe Terranova is long EMC; Joe Terranova is long SJM; Joe Terranova is long TRIP; Joe Terranova is long SBUX; Joe Terranova is long HOS; Joe Terranova is long AXP; Joe Terranova is long PXD; Joe Terranova is long EOG; Joe Terranova is long CXO; As of 8/21/13 Jon is long AAPL; Jon is long GLD ; Jon is long FB; Jon is long UVXY; Jon is long NOAN; As of 8/19/13 Josh Brown is long JPM; Josh Brown is long AAPL; Josh Brown is long TGT; Josh Brown is long GOOG; Josh Brown is long QCOM; Josh Brown is long BK; As of 8/19/13 Michael Murphy is long BAC; Michael Murphy is long C; Michael Murphy is long INTC; Michael Murphy is long MSFT.