As the Federal Reserve continues to taper its quantitative easing (QE), multiple asset markets could drop by 25 percent, says Jay Jordan, founder of The Jordan Company, a private equity firm.

The Fed already has cut its monthly bond purchases to $55 billion from $85 billion since December. If it continues tapering at the current pace, the Fed will end its QE in October or December.

The Fed's massive easing program, which also includes near-zero short-term interest rates, has artificially inflated financial asset prices, Jordan told CNBC. The Standard & Poor's 500 Index reached a record high last Friday.

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"It's not just stocks, it's all assets," he said. "We've been living under the cloud of financial repression for the last four to five years."

The 10-year Treasury yield stood at 2.69 percent Friday morning.

Jordan said the plummet of emerging markets earlier this year provides a model of how U.S. markets will react to shrinking Fed stimulus.

"You've seen it start in the emerging markets," he said. "It's already facing us. Their currencies are getting destroyed. Their GDPs are getting destroyed."

But many investors remain bullish on stocks.

"If consumers go back in and are confident enough to start spending again, that supports earnings and will certainly support the equity market," Chris Gaffney, senior market strategist at EverBank Financial, told Bloomberg after news of strong consumer spending in February.

"I feel like we’re forming a base that we can move higher now."

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