As U.S. stocks ease back from record highs this week, more and more traders see the S&P 500 as overvalued and are pricing in a "serious correction."
Jack Bouroudjian, CEO of financial services holding company Bull and Bear Partners, told CNBC's Asia Squawk Box on Tuesday he was the most bearish he has ever been on the U.S. stock market.
"The market is overvalued and we've hit an inflection point. Unless we see some real strong growth numbers coming out of the economy, I'm looking at a 10 percent correction between now and October. It's time to be very defensive," he said.
Bouroudjian said the market's notional value has become vastly inflated versus the country's total gross domestic product on a historical basis, which is a red flag and could herald an imminent correction.
(Read more: S&P 500 Nears 'Ultimate' Death Cross: SocGen)
"Equities have historically traded at a discount to GDP except for two times in the last 50 years," he said. "In the late 1990's we traded at 148 percent over GDP, and in 2007 we traded at 118 percent over. Unfortunately, both times were followed by a serious correction. We are now at 110 percent."
"The time has come to say that the 'easy' money in equities might be behind us unless we see real growth in the GDP numbers and forecasts increase for top line revenue from corporate America over the next couple years," he added.