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Novogratz says tech sell-off has changed market mindset: 'I think you're going to see more pain'

Michael Novogratz, CEO of Galaxy Investment Partners
Adam Jeffery | CNBC

(This story is for CNBC Pro subscribers only.)

Michael Novogratz told CNBC on Tuesday that he believes the Nasdaq Composite has already posted its record high for the year, following a three-day pullback that brought the tech-heavy index into correction territory.

"We've been in a speculative frenzy, and I think the bubble popped," the billionaire investor said on "Closing Bell." "I think we've put the highs in for the year in both the Nasdaq and in Tesla, and now it's a 'sell the rally,' not a 'buy the dip' market, so the psychology has to change." 

Novogratz, a former hedge fund manager who is now founder and CEO of Galaxy Digital, has for months been skeptical about the speed at which stocks have recovered from their coronavirus-era lows in late March. On Wednesday, a day before the Nasdaq's pullback began, Novogratz suggested the market was "close to the end" of its massive run higher. 

"Certainly, the bull market is not over yet. I do feel like we're getting close," Novogratz said then, also during a "Closing Bell" appearance. 

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