Scott Black: Time To Grab Some Value

Some traders think this might be a good day to spend on the sidelines. Not Scott Black. He says investors should get to work right away, snapping up value stocks.

"Most of the systemic risk has been taken care of by the Federal Reserve...but I would stick to what you do normally, which is to buy high-return-on-equity stocks," the president of Delphi Management told CNBC. "At this point, I don't think the underpinnings of the market are such that we're going to see major downdraft from here."

Although he believes it's safe to go into the water again, he sees some rip currents to beware: "[Investors] probably shouldn't be buying financial-service stocks," he said.

Recommendations:

So what looks good to him?

"You can go to things like oil-service companies, that have good contracts into next year," he said. "You can buy companies like Noble [NE 48.16 0.41 (+0.86%) ] and Ensco [ESV 61.54 -0.22 (-0.36%) ], at 6 P/Es, ROEs over 25 percent, and virtually debt-free balance sheets.

"You can buy an Oracle [ORCL 20.21 0.46 (+2.33%) ], which has demonstrated sustainable earning power, more cash than debt...these aren't speculations; these are good businesses, and you should be buying good businesses at cheap prices."

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