Top value strategist Mario Gabelli says that the economy looks steady, but adds that there is not much of a margin of safety in stocks right now.

Gabelli tells CNBC that “on balance there’s no margin of safety. If something goes wrong, you’ll have the volatility that you had [Thursday].” He says oil’s collapse and the stronger dollar have hurt U.S. corporate earnings, and the benefits from lower oil prices have been showing up more slowly, CNBC reported.

But Gabelli sees reason for some optimism. “As we look into 2016 … I’m [also] looking at the economy in Europe picking up,” Gabelli said. “The American companies will do a lot better because of earnings in Europe coming into the U.S. The [U.S. stock] market is a function of earnings, and we’re comfortable with that.”

Gabelli also said that when the Federal Reserve does move on interest rates, he expects the moves won’t be dramatic.