A reduction in the Federal Reserve's $85 billion-per-month bond-buying program would be a boon for stocks, Jay Bowen of Bowen Hanes & Co. said Tuesday.
"After all, who wants to be in a perpetual state of monetary life support? That is going to get you nowhere, as Japan has demonstrated over the last 20 years," the "Oracle of Tampa" said on CNBC's "Halftime Report."
Bowen, who runs the $1 billion pension fund for Tampa, Fla., firefighters and police officers, said the stock market would welcome the normalization of interest rates "if it's occurring for the right, growth-oriented reason.
"And by that I mean higher real rates of interest in terms of forecasting higher real returns on capital with an increase in economic activity. So, in that respect I think the tapering is bullish."
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A reduction in the Fed's bond-buying would likely occur in 2014, Bowen said. "But the zero-interest rate will be in place for longer."
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