The stock market got off to a better start in October, after ending the prior month in a sea of red. The three major U.S. indexes all posted their second straight day of gains on Tuesday, with the S & P 500 posting its best two-day gain in roughly two years, while the Dow Jones Industrial Average and the Nasdaq Composite jumped more than 3%. Market veteran Phil Blancato believes the market is now heading into a “turnaround week,” and investors should take the chance to “jump into the market.” “I would argue the second week of October, which is traditionally the best week of the year, is going to be a rallying point going into the U.S. mid-term elections,” Blancato told CNBC’s ‘Squawk Box Asia” on Tuesday. The president and CEO of Ladenburg Thalmann Asset Management, which has more than $4 billion in assets under management, said investors will get a “pretty good idea” where inflation stands, as CPI data is scheduled to be released on Oct. 13. He also said it was “inevitable” that the Federal Reserve will not want to be “aggressive” in an election cycle. “When you see stocks trading at multiples below historical averages and you know that third quarter earnings and growth are probably going to be strong enough to support current valuations. I think today investors are finally realizing that stocks are less expensive and it’s a chance to enter the market,” Blancato said. “Hold on to your hat. We could end this year a heck of a lot closer to -5[%] then -25[%],” he added. The S & P 500 is currently trading down around 23% year to date, while the Dow Jones is down over 19%. Own the ‘great names’ Blancato believes investors “have no choice” but to gravitate to the “great names that you want to own.” One such stock is Microsoft . He believes the company will benefit from more than $900 billion of aggregate spending in the U.S. this year. “A lot of [this money] is going to go to a company like Microsoft because they do commercial and retail businesses. These two come together at a time like this, it’s really going to drive revenue higher and you’re finally buying it at a price point that is fairly reasonable,” Blancato said. He also likes Costco for its “tremendous e-commerce penetration.” The online platform now has 65 million members and is growing 11% year-on-year, according to Blancato. He expects the company to benefit heading into a period of prolific growth for goods, with Costco well-positioned in both day-to-day products and more upscale offerings. While Costco has a current dividend yield of just 0.8%, according to FactSet data, the company has a track record of returning cash to shareholders. It paid out special dividends of $7, $5, $7, and $10 per share in 2012, 2015, 2017, and 2020, respectively. Read more Stocks were crushed in September. Here’s what’s coming next, according to Wall Street pros Should investors flee stocks? Strategists give their take — and reveal how to trade the volatility Want a ‘short term defensive move’ with up to 5% return? Buy this fund, says strategist “Now you have got a strong barbell between the two. You get a great dividend, you are going to be able to play the tech rally that happens to a degree with Microsoft, but also be with consumers spending on staples and on discretion. That’s how you play this market. Be paid to wait around,” he said. While Blancato likes Apple , he is not adding to his position just yet. He said there remains uncertainty over the success of the new iPhone 14, while the company’s products remain underpenetrated in China. Nevertheless, he acknowledged Apple’s ability to “constantly reinvent” itself, while the company is also heading into a seasonally strong period where it could put up “some really impressive numbers.” “It’s a company that could easily trade back in the $170s if we get that rally. So, if you don’t own it, I would say as an entry point here — the $136, $138 trade, if you can get that low enough,” he said.