In a recent letter to clients, hedge fund manager Paul Singer’s firm Elliott Management warned of another market dip coming down the pike, this one to the tune of 50% below its peak. This according to an article in Chief Investment Officer.

The letter stated, “Our gut tells us that a 50% or deeper decline from the February top might be the ultimate path of global stock markets,” adding that the world is immersed is the deepest recession since the Great Depression in the 1930s.

The article notes that Singer has a “reputation for warning about economic dangers long before the rest of the financial community detects them. The financier has been warning about a significant market plunge since last summer,” when he focused on the rise in corporate debt.

In the letter, the firm argued that stock prices are still too high: “To us there does not appear to be a gilded cornucopia of shining bargains.”