In an interview with CNBC’s “Halftime Report,” well-known short-seller and founder of Kynikos Associates Jim Chanos said that it’s dangerous for investors to believe that the Fed will always bail out the stock market from big losses, adding that it’s not a “cogent investment policy to hold onto.”

With the market sell-off speeding up, the Dow falling as much as 1100 points, and the S&P 500 dropping more than 10% from its record high (as of the time of the interview), investors were steeling themselves for the Fed to take a more hawkish approach in the coming days. The central bank has indicated that not only will they raise interest rates and trim asset purchases in the near future, they could also tee up a balance sheet reduction. That move would be the most aggressive policy change after almost two years of the Fed pouring the most money into the economy in U.S. history.

Rates were last raised in 2018, and Chanos called that move, which resulted in a major sell-off in the stock market, “a big error” on the Fed’s part. He went on to tell CNBC that his hedge fund is slightly up amidst the recent decline in stocks and advised investors to avoid “names with high-flying multiples.”