The stock market still has much further to fall and is unlikely to find its footing again until the Federal Reserve stops tightening policy, according to Guggenheim global chief investment officer Scott Minerd. Minerd, who has previously predicted a ” summer of pain ” for the market, said on CNBC’s ” Squawk Box ” that he expects stocks to be an afterthought for the central bank while it focuses on inflation. “The Fed has basically told us they’re on autopilot until they think they’ve crushed inflation. They don’t care about the market,” Minerd said at the World Economic Forum in Davos, Switzerland. Minerd added that it is “quite likely” the S & P 500 can drop to 40% below its all-time high, but if that decline happens in a way that isn’t “orderly,” then the Fed could step in. On Friday, the S & P 500 briefly traded more than 20% below its all-time high before closing 19% off the mark. Minerd compared the Fed’s rate hikes and the economy as vehicles driving toward each other at different speeds, and said Guggenheim believes the Fed will soon enter restrictive policy territory. “I think they’re going to just overdo it,” he said of the central bank. One area of the market that is already down more than 20% is technology, which began its decline in December. Minerd said that those stocks may look like smart buys now, based on historical valuations, but they are unlikely to bounce back soon. “Markets typically don’t value when they’re fairly valued. Markets tend to overshoot,” Minerd said. The veteran investor pointed to the Cboe Volatility Index, which was trading near 29 on Monday, as a sign that the market was not near a bottom yet. That measure needs to be well above 40 to signal “real panic” and the final wave of selling, Minerd said.