Global investor Dan Arbess told CNBC on Tuesday that he still likes stocks despite the recent sell-off and fading support from the U.S. Federal Reserve.

Calling the current market environment the "real world," he said investors shouldn't worry about Tuesday's sell off.

"What we are all adjusting to is a market that is not under the continuous protection of manipulation of government," such as historically low Fed interest rates, Arbess, CEO of money management firm Xerion Investment, said in a "Squawk Box" interview. He also said the stimulus from President Donald Trump's tax cut is starting to wane.

"The effects of those things are wearing off now and we're getting back to a normal market environment where some companies beat, some companies miss. That's what it's supposed to be like," Arbess added.

According to minutes released of the Fed's most recent policy meeting, central bank officials remain convinced that continuing to gradually increase rates is the best formula to preserve a steady economy. The central bank has already hiked rates three times this year, with one more expected in December.

For those who are worried about the economy regressing, there are other signs of strength, Arbess argued. Another reason to be optimistic, according to Arbess, is stocks are fairly cheap with a price-to-earnings ratio of about 15 times forward earnings.

Another place to find optimism is in the tech sector, he said, where companies are yielding high profits and growing rapidly outside the United States. Last month, the Xerion chief said Chinese internet giants , , and are ideal notwithstanding the ongoing Trump-China trade war.

While citing broader concerns in the long term, he said there's no need to worry in the near term.

"This is a pivotal week for earnings," he said. "I am positive on earnings and the earnings cycle because the companies that are driving the market forward are doing very well."