Tice: S&P 500 Will Drop 60 Percent

David Tice, the famous stock bear at Federated Investors, predicts that the Standard & Poor’s 500 Index will drop more than 60 percent — to 400.

He told Bloomberg that the recent 60 percent rally has gone too far.

“It’s gotten very overbought,” Tice said. “There’s been a huge shift from negative to positive sentiment. We think a lot of the positive numbers coming out are really not very good underneath.”

As for the S&P 500, “We believe the market won’t bottom until it gets to a 400 level. Will it take three, six, nine months to get there? Probably. The market will generally overshoot fair value.” (more)