Nov. 18, 2008 at 12:51pm

Strategist urges businesses to compete globally

Bruce McCain, chief investment strategist and research director for Cleveland-based Key Private Bank, spoke to Pierce County clients last night in Tacoma after meeting with reporters to offer his thoughts on the changing economy.

Topping the list of recent events that could impact the economy was the election of Barack Obama.

"I expect that business owners will be pleasantly surprised when it comes to expectations," McCain said, adding that Obama has placed himself at the center of the political spectrum and will likely impact small businesses in positive ways.

"I think there will be changes that may not be as friendly to (large) businesses as in the past," McCain said.

Locally, McCain said he expects that estate tax threshold to be raised to $3.5 million. He added that he expects both the stock market and the U.S. dollar to stabilize.

"We think you've likely seen a bottom (in the market)," McCain said.

Among the other issues impacting the business community is the recent bailout legislation; McCain said the regulation is to be expected.

"Historically, we've swung from too much regulation to a free enterprise system without appropriate checks and balances," McCain said. "We've seen the excesses and now we're going to see the regulations."

On the recent question of whether to use taxpayer money to save the nation's auto industry, McCain said he encourages business owners to think outside the box.

"We need whole new industries and whole new jobs," McCain said. "If we try to save has-been industries that can't compete, we're setting ourselves up for failure."

He added that, in five years, the economy will be vastly different than the economy of five years ago.

"The economy is going to have to be increasingly global," McCain said. "The American people are going to have to be smarter in their use of resources. Live smarter, not more boldly."

To business owners wondering whether to batten down the hatches or make a growth move, McCain said it's the product that should be considered.

"The most important thing is to be brutally honest about the marketing potential of individual products," McCain said, adding that retailers reliant on consumer dollars may just have to wait out the storm, while business that offer services to other businesses might have a stronger foot hold.

"Whenever there's a disaster, there's always opportunities versus risks," he concluded. "You've got to look past the headlines."

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