Roubini: No Stock Bubble, but 'Huge' Crash Could Come Later

Nouriel Roubini, co-founder and chairman of Roubini Global Economics
Simon Dawson | Bloomberg | Getty Images
Nouriel Roubini, co-founder and chairman of Roubini Global Economics

Stocks aren't in bubble territory as yet, but a "huge rally in risk assets" over the next two years puts markets in danger of a big crash, renowned economist Nouriel Roubini said on Tuesday.

(Read More: Another Crash Coming, Bigger Than the Last: Roche)

Roubini added that there is a "huge gap between sentiment on Wall Street and the main street," and the real U.S. economy remains weak.

His comments, made at a private dinner event in Las Vegas, came after a rally on Wall Street on Tuesday brought major indices to record highs. The S&P 500 extended its recent rally to a fresh high to close at close at 1,625.96, and the Dow finished above the 15,000 milestone for the first time.

(Read More: Roubini: Fed Risking Sequel to 2008 Financial Crisis)

As for yields, which have been driven to record lows on back of the Federal Reserve's aggressive bond buying programs, Roubini said they will "normalize very slowly."

The U.S. central bank is in its third round of quantitative easing program, which currently buys $40 billion of mortgage-backed securities, and $40 billion of Treasurys a month.

-- By's Li Anne Wong; follow her on Twitter: @LiAnneCNBC

-- This story was first reported by Scott Wapner.