Interactive Brokers’ Thomas Peterffy sees the S&P 500 dropping nearly 20% from here

Interactive Brokers Chairman Thomas Peterffy doesn't think the bottom of the market is near. The S & P 500 is already down more than 20% for the year, and Peterffy thinks it could decline another 19% from Tuesday's close to bottom around 3,000. "The market spent relatively little time at the lows, but we certainly believe that it will do so again," the market veteran told CNBC's " Squawk Box " Wednesday. Stocks have been turbulent all year. Just last Wednesday the S & P closed at 3,577.03, its lowest level since November of 2020. Last Thursday, the market had an historic turnaround with the Dow Jones Industrial Average closing up over 800 points and the S & P climbing 2.60% to 3,669.91. Peterffy believes that interest rates are likely to continue going higher and inflation won't come down as much as expected. Consumer prices increased 0.4% in September and the Federal Reserve 's preferred inflation gauge, the personal consumption expenditures price index excluding food and energy, gained 0.6% in August. Fed officials have been surprised at the pace of inflation and expect to continue raising interest rates . The 10-year Treasury yield was last at around 4.09% on Wednesday. "Both interest rates and inflation rates will settle down between 4% and 5% and we are going to go into a stagflation in the economy," Peterffy said. In this environment, a buy and hold investment strategy won't be rewarding, he said. "People better roll up their slides and begin to research and try to identify companies with great business prospects and good management," Peterffy said. "That is not going to be so simple." That said, his 3,000 bottom also depends on what happens between now and then. "We want to leave the door open to change our views," he said.