Sept. 30 (Bloomberg) -- The Dow Jones Industrial Average may plunge another 5,300 points because the economy is slowing, according to David Tice, whose Prudent Bear Fund has advanced 13 percent in 2008 even as the stock market dropped.

Tice told Bloomberg Television that the Dow average, which closed at 10,365.45 yesterday, might sink to 5,000 or 6,000. That implies a drop of as much as 52 percent.

``We don't believe that the pain is over,'' said Tice, who oversees $1.08 billion in Dallas. ``The market hasn't even fallen that far yet and we're already throwing trillions of dollars at this.''

The U.S. House of Representatives rejected a $700 billion bailout plan yesterday, causing a 777.68-point decline by the Dow average that was the biggest in history. The Federal Reserve said it will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

The Standard & Poor's 500 Index, another benchmark index for U.S. stocks, has tumbled 29 percent since its October record.

Investors should purchase gold and other precious metals, Tice said.

``Less equities investments makes sense,'' he said.

To contact the reporters on this story: Whitney Kisling in New York at wkisling@bloomberg.net; Carol Massar in New York at cmassar@bloomberg.net.

Last Updated: September 30, 2008 08:45 EDT