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Top 401k stock for bargain prices

Pete Fowler
pfowler@postindependent.com
Glenwood Springs, CO Colorado

GLENWOOD SPRINGS, Colorado ” Like many others during this national economic crisis, Hollis Kelley has seen his 401k investment returns drop in value by as much as 20 percent.

But the Edward Jones financial advisor doesn’t see any cause for panic. He sees opportunity.

He’s continuing to make the same amount of 401k contributions and has changed his 401k investments from “probably a little too aggressive” of an approach to a strategy more balanced between many types of investments.



He said investment value dropping off this year amidst national economic uncertainty could actually benefit investors over the long term. They can now buy shares of quality companies at discounted prices, which have historically always come back up over the long run, he added.

“For prudent long-term investors this is a huge opportunity,” he said. “You and I and investors don’t get many chances to buy great companies at these kinds of prices. I would say that this will actually increase people’s returns that are willing to stick to a strategy.”



Kelley manages almost $100 million in investments out of a Glenwood Springs office.

Panicking and pulling money out of a 401k account and stuffing it into a mattress isn’t a great investment decision. But Kelley said that’s a key message Edward Jones is sending to its clients: Seeing an investment like a 401k drop doesn’t matter unless you need your money today.

“This is long term money, what does it matter what it’s worth today?” he said.

He said people should view investments not as a slot machine or a piggy bank but as a business where you’re buying quality companies and over a five-year or more period and making money.

Kelley said the mainstream media has come up with some sensationalistic headlines about the economic crisis, but serious investors are buying great companies at a 30 or 40 percent discount.

“Five or 10 years from now that may be a great move,” he said.

Kelley is reassuring investors and wants make sure they look to the long-term and don’t panic, which he said can become a self-fulfilling prophecy that further drives down prices and destroys wealth.

“Forget about the ‘experts’ who are feeding the crisis with predictions of doom and gloom,” says an Edward Jones strategy report. “The people telling you what will happen next probably didn’t warn you that this crisis was coming. No one has a crystal ball. Things are bad, but they’ve been bad before, and historically the economy has always bounced back.”

Kelley recommends getting financial advice from a professional for most people. But a good place to start researching investments is http://www.morningstar.com.


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