Anthony Scaramucci is worried about the stock market. Here's why

"I don't like where the Fed is. I don't like the fundamentals," the founder of Skybridge Capital and former White House communications director proclaimed on CNN Business' Markets Now live show Wednesday.

The investor also characterized the US economy, which grew 3.2% in the first quarter of the year, as "overheated." If that's true, that's a bad sign for markets: If the economy grows too fast, the ensuing recession can come sooner and harder than if the economy grew at a slower pace.

"We've had an incredible bull market," Scaramucci told CNN Business anchor Richard Quest. "Everyone is a long-term investor until they have short-term losses."

Speaking from the SALT conference Skybridge hosts in Las Vegas every year, Scaramucci noted his fund hedges against volatility in the market.

Scaramucci likened his investment philosophy more to that of of legacy investors like Warren Buffet or Charlie Munger: If he had $1,000 to invest, he would put 40% to 50% of it in stocks and the rest in bonds and hedge funds.

"Don't chase unicorns and rainbows" if you want to become wealthy, Scaramucci said.

He said the recent burst of IPOs of such as Uber, which is expected this week, and Lyft, (LYFT) was reminiscient of dot-coms: interesting ideas, but little clarity on how the businesses plan to become profitable.

Scaramucci also took note of the drivers of the ridesharing apps, saying it was unclear how they were benefiting from their companies, which gives him pause about the future of their businesses. Uber and Lyft drivers are protesting today, in part about pay.

Trade fear

Stocks have been volatile all week as investors try to determine the outcome of US-China trade negotiations. On Sunday, President Donald Trump threatened additional tariffs on Chinese goods, which kicked off a global equity selloff.

On Wednesday, markets found some firmer footing again, climbing higher after White House Press Secretary Sarah Sanders said the administration had received indication that China wanted to make a deal.

Scaramucci said he is wary of additional import penalties from his former boss.

"I expect another 5% to 7% drop in the market if more tariffs come," said Scaramucci.

He added that he didn't agree with the strategy and thought the negotiations should take place behind the scenes. At the end, however, both parties need to get a trade deal done, he said.

When asked about his brief stint in the White House, Scaramucci said he knows why he was let go after just 10 days on the job.

"I did something fireable." At the SALT conference Wednesday, Scaramucci is set to interview former White House Chief of Staff John Kelly, who fired him.

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