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Wilbur Ross: Correction is in the 6th inning

Billionaire distressed asset investor Wilbur Ross said Tuesday the stock market correction is in the sixth—perhaps the seventh—inning.

And while markets may not have much further to fall, he said there will still be plenty of drama in the last part of the ballgame.

"I don't think it's going to have a very serious downward direction from here," he told CNBC's "Squawk Box." "But I think there will be lots and lots of volatility around whatever is the midpoint."

All major U.S. stock averages entered correction Monday, with the Dow Jones industrial average capping its biggest three-day point loss ever after plunging 1,089 points at the open. However, U.S. stock futures pointed to a sharply higher open Tuesday.

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Meanwhile, China's Shanghai composite sank another 7.6 percent Tuesday after an 8 percent drop in the previous session.

The U.S. economy can and will withstand China's slowdown, Ross said, in part because the United States does not export much to the country.

That said, the U.S. economy is only "limping out of recession," with few indications that anything on the horizon will suddenly propel growth, he added.

Ross said he is still investing in China, but he noted he's not under the illusion the country will achieve its target of 7 percent growth. Instead, he believes the Chinese economy will grow 5 percent at best, citing stagnant electricity, natural gas, steel and cement consumption.

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