Anthony Bolton, manager of the Fidelity Special Situations Fund, believes recent declines in stock markets around the world, including the U.S., will continue for months, Bloomberg reports. And Bolton has accurately predicted declines in the past, most notably the beginning of the bear market in March 2000.

Bolton says he's become concerned that too many investors are taking on risk, pouring money, in particular, into emerging market stocks and funds. This has pushed valuations to unsustainable levels, he says. "We see people being very prepared to take on risk. That worries me," Bolton said.

The portfolio manager, whose fund has increased 140 times in value since its inception in 1979, is also concerned about the possibility of a widespread bird flu epidemic, as well as unrest in the Middle East. "Bird flue is a risk. We have had the leading experts in the field come and talk to us," Bolton said. "It must be serious for governments to spend the amount of time and money that they have."

In the past month, the S&P 500 has slipped 3.9%, the European Dow Jones Stoxx 600 Index has dropped 7.4%, the Russian Trading System Index has declined 16% and the Turkish ISE National 100 Index has fallen 25%.

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