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.”

Tice notes there is wide disagreement as to the economy’s strength. “We don’t think it’s that much better,” he said.

“When the economy has improved it’s been due to trillions of dollars of government spending,” such as Cash for Clunkers.

“It’s costing us so much money to generate this economic growth.”

Tice says investors should study the bear case.

“Recognize that the last 20 years might not be the same as the next 20 years. Be defensive and hold some gold.”

Very few experts are as bearish as Tice. CNBC’s Jim Cramer says the market is undergoing a mild correction.

“We’ve told you that a 5 percent to 7 percent decline could always be in the cards,” Cramer said on the air.

“The 7 percent solution at last is upon us.”