Volume 1, Issue 6
Table of Contents

Cover Story:
Small Business is BIG Business
In Rockland, small businesses are the engine that drives the economy

RBD Round-Up:
How'd He Do That?
The interesting rise of Mal McLaren
RBD Business Survey
How do you communicate?

DEPARTMENTS:

Economic Round-Up
• The Smart Investor
Your portfolio is doing great, so why rebalance?
• Economic Viewpoint
The U.S. Attraction Factor

Business Round-Up
• Down, But Not Dirty
The best way to handle company layoffs is to provide options
• Marketing By Design
The top 15 campaigns of the last 100 years. You know them all, but why?
• Receivables
One of the largest headaches for small businesses

Ask The Experts
• Talking Taxes
• Payroll: Key Issues
• Workplace Hotline

Invest in Your Community
• Where's the Fire?
Rockland Volunteers - increasing efforts and awareness

Odds & Ends
• The Last Minute
• Rockland Newsmakers

Dedicated Section:
Rockland Business Association:

The President’s Desk
New Healthcare Tax
will hurt small and midsized businesses. Here's how.

RBA/United Way Golf Outing
The Rockland Open: Monday, May 21st

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

For the millions of people who have seen “The Secret,” a documentary that purports to reveal after millenniums of obscurity “the law of attraction.” The U.S. has been experiencing this law first hand.

The “attraction factor” coined by one of the contributors of the documentary talks about attracting wealth into one's life. The U.S. is attracting wealth in the form of foreign investment in dollar denominated assets as never before. Almost $3 billion a day is attracted and is being invested in America. Foreign investment, at first, was buying up U.S. Treasury Bonds. Now because of the sheer size of the dollar inflows and the falling U.S. budget deficit, investment is being spread out in a wide range of assets. Foreign investors are buying up huge amounts of U.S. agencies, corporate bonds, commodities, equities (as well as outright purchase of companies), and commercial real estate.

Commercial real estate is poised to have another solid year because of these continued inflows and the availability of affordable long-term financing. The year 2006 ended on a strong note with the National Association of Realtor's (NAR) forward looking “Commercial Leading Indicator for Brokerage Activity has increased for seven consecutive quarters and is at a record high.” David Lereah, NAR's chief economist reported. Office, hotel and industrial vacancy rates are all expected to decline in 2007, while retail and apartment vacancy rates are expected to hold steady.

Commercial real estate will likely prosper in 2007 because of the lack of overbuilding, low fixed rate mortgage financing levels, corporations reporting strong earnings, a solid employment picture and record amounts of domestic and foreign investment in commercial real estate. A weakening dollar could also add to the attraction of commercial real estate. Properties become more attractive as foreign investors can purchase dollar denominated assets at a discount.

The outlook for the economy and for interest rates is certainly less clear than it was last year at this time. The market and pundits say that the economy is slowing and that “rates” will fall. The Federal Open Market Committee has indicated that the economic growth will accelerate in this spring. All in all there is a low probability of a recession in 2007 and the “Attraction Factor” of assets in the largest and safest economy in the world will surely continue. RBD

Bruce Mason is the Chief Economist at Union State Bank. The foregoing (above) comments and information are for general information purposes only and the data included is from sources we believe to be reliable but we make no representation as to the accuracy or completeness of any such information. The opinions and views are solely those of our Economist and are not guaranteed nor should they be relied upon in making any investment decision.