A chief investment officer lays out why a dot-com-style bubble brewing in stocks will culminate in a 30-40% crash – and says the Fed could set it off

• Investor concerns about a bubble in stocks are growing amid a euphoric bull market.
• In an interview with Insider, Chris Zaccarelli said easy financial conditions will lead to a crash.
• The CIO at Independent Advisor Alliance said inflation will eventually force the Fed to up rates.

Worries about a bubble in the stock market have been growing since valuations spring-boarded off their March 2020 lows amid unprecedented monetary support from the Federal Reserve.

These concerns have only grown stronger since November, when investors became excited about the prospect of robust fiscal stimulus from a Democrat-controlled government. Around the same time, pharma companies rolled out multiple COVID-19 vaccine discoveries.

The S&P 500, hovering near 3,900, now sits right around all-time highs and is up about 18% since the beginning of November.