Internet bubble is bursting: JPMorgan's Kolanovic

One of the most accurate Wall Street market forecasters is sounding the alarm on one group of technology stocks.

Marko Kolanovic, JPMorgan's global head of derivative and quantitative strategies, said Monday on CNBC's "Fast Money" that we're seeing an Internet bubble bursting.

"We are now down more than 20 percent on average on some of these names. So you can even say it's in a bear market in that specific niche," said Kolanovic. "I wouldn't be surprised if it gets to 30–35 percent, cumulative."

Kolanovic, who is closely followed by the hedge fund industry and correctly predicted last August's swoon, pointed to some of the most widely held, high growth Internet stocks as trouble spots, particularly Facebook, Amazon, Netflix and Google, commonly referred to as the FANG stocks.

The Nasdaq 100 on Monday closed down 1.59 percent, and it's on track to see its worst quarterly loss since 2008.

Even though Kolanovic sees more pain ahead, he said it won't affect the entire technology area.

"I wouldn't say it's a broad-based bubble in the tech sector. We certainly have some sub–industries within tech which are actually cheap," he said, adding that value assets will continue to outperform momentum stocks.

There are still places were investors can find upside, according to Kolanovic. He's bullish on gold, emerging markets and energy.