Keynote

"All courses of action are risky, so prudence is not in avoiding danger (it's impossible), but calculating risk and acting decisively."

Although said to be uttered centuries ago by Machiavelli, this characterization of prudence has modern-day resonance for investors who find themselves in a strange new world wrought with uncertainty. The prudent course, Machiavelli might agree, is to act decisively—to confront the new world of investing with new-world tools and solutions.

Unfortunately, a recent BlackRock survey revealed that most investors are stuck in a place of inaction and indecision. Only 14% are actively moving assets into a new allocation strategy. Those who are waiting for markets to "settle down" before adjusting their portfolios may be waiting a very long time. But their financial futures are not waiting. They are approaching as quickly as ever.

The fact is, it's a new world of investing—and it has staying power. If it's been too long since you updated your portfolio, there's no time to lose. It's time to be an investor again, and BlackRock is here to help. Should you consider alternative strategies? What about equities—are they too volatile? And why should you worry about income if you're nowhere near retirement? You can find insight on these questions and more in the pages of this magazine, or by visiting blackrock.com/newworld.

As ever, we realize you have a choice in investment managers and we take seriously the opportunity—and the responsibility—to partner with you as you venture boldly toward your financial future.

Sincerely,

Frank Porcelli
Managing Director and Head of US Retail

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are those of the BlackRock investment professionals profiled as of December 3, 2012, and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or make investment decisions that, in certain respects, may not be consistent with the information contained in this report. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

This material is provided as an educational tool and is based on current tax laws, which may change in the future. BlackRock cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. BlackRock is not engaged in rendering any legal, tax, accounting or investment advice. Please consult with a qualified professional for this type of advice.

Shareholder, published by BlackRock, Inc., is designed to provide general information about investing. It is not intended to offer specific investment recommendations. Investing involves risk. You should contact your financial professional about your particular situation before making important investment decisions. Contact your financial professional about BlackRock products.

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