Predictions for 2009: BlackRock`s Bob Doll Predicts Equities Will Advance by Double Digits but Remain Highly Volatile in `09, as Recession`s Impact Lingers

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US Economy Begins to Stabilize in `09`s Second Half, But Recovery is "Muted"

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Critical to Keep Focus on Quality Companies; Healthcare, Information Tech,
Energy Favored

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Corporate, High Yield, Muni Spreads Over Treasuries Will Narrow As Fear Recedes,
Confidence Rebuilds

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NOTE TO EDITOR AND READERS:A more extensive version of the following release,
with Bob Doll`s commentary on his predictions for 2009 and an explanation of his
scoring on his predictions for 2008, is available at the Press Center of the
BlackRock website, http://www2.blackrock.com/global/home/Press/index.htm

NEW YORK--(Business Wire)--
Equities will remain highly volatile but achieve a double digit percentage gain
for 2009 overall, with the support of increasingly attractive valuations and
massive sideline cash, according to Robert C. Doll, Vice Chairman and Chief
Investment Officer of Global Equities at BlackRock, Inc. (NYSE: BLK).

At the same time, Doll said, 2009 will be marked by negative economic growth and
significant earnings declines, with the United States remaining in the grip of
what will likely be the longest and deepest recession of the post World War II
period. In the US, the economy will face its first nominal GDP decline in 50
years, while global growth will fall to its lowest rate in nearly 20 years.

Economy Begins to Stabilize in `09`s Second Half

The massive, unprecedented fiscal and monetary stimulus launched in the US and
globally will yield the beginnings of economic stabilization in the United
States in 2009`s second half and in Europe by the start of 2010, Doll believes.
"When recovery finally comes, it is likely to be muted, as deleveraging on the
part of the consumer and the financial sector will take many years," he said.

In 2009, investors will begin a slow return to "risky" assets versus "safe
assets," Doll said.

"Volatility levels are likely to recede from the records set in 2008, but 2009
will continue to be a highly volatile year," he said. "We should see multiple
double-digit percentage rallies as well as declines all throughout the year.

"The new year begins with high uncertainty, low expectations and significant
problems," Doll said. "Nevertheless, if our analysis proves out, 2009 will be a
year when reflation and liquidity begin to beat credit woes and fear."

Doll has been publishing his annual "Ten Predictions" for the year ahead in the
financial markets and the economy for over a decade. For 2009, Doll has issued
12 predictions, to better reflect the full spectrum of key economic and
financial issues and themes that will shape investment market performance over
the coming year.

Earnings Rebound in `10 Preceded by Stock Rally

Doll believes that an equity market bottoming process began on October 10, a
process further confirmed by a secondary market low on November 21. "With record
fiscal and monetary stimulus, substantially lower oil prices, much cheaper
valuations, and lots of cash on the sidelines, it`s likely that stocks will
rally in 2009," he said. "We believe an earnings rebound is likely in 2010, the
signs of which will become evident in 2009. Under this scenario, we believe a
year-end S&P target of 1000 to 1050 would be reasonable."

The US will outperform Europe, and emerging markets will outperform developed
ones during 2009, Doll said. "Europe has been slower than the US to recognize
its economic problems, as shown by its still higher interest rates and a slower
clean up process across the banking system," he said.

Corporate Earnings Weakest Since 1930s

Economic growth will be negative for at least 2009`s first half, Doll said, and
close to zero in the second half of the year.

Doll also believes that corporate earnings, which fell by a double-digit
percentage in 2008, will likely fall by double digits again in 2009 - marking
the first back-to-back such declines in earnings since the early 1930s.

Declines in asset values across the board and poor real growth all point to very
low inflation rates in 2009, with inflation for the full year likely to fall to
approximately zero in the developed world and below 5 percent in the developing
world, Doll said.

"We believe that aggressive monetary and fiscal stimulus initiatives will
eventually prove successful in preventing a widespread decline in prices," he
said. "These actions are aimed at averting a banking system collapse, containing
economic contraction, sustaining credit flows to quality borrowers, facilitating
the restructuring or failure of weak borrowers, and arresting the decline in
money velocity."

A rapidly growing federal budget deficit will be a consequence of record federal
fiscal stimulus initiatives. "We expect the federal budget deficit will cross
the $1 trillion threshold both through massive spending programs and reduced tax
receipts resulting from the recession," Doll said. "The budget deficit will
limit the Obama administration`s ability to deliver on its promised campaign
initiatives - and will eventually lead to massive tax increases."

Healthcare, Information Tech, Energy Favored in `09; Commodity Prices Will
Rebound

The tension between debt-induced deflation and policy-induced reflation will
sustain high market volatility during 2009, continuing the trend that marked
both equity and commodity price trends in 2008, Doll said.

Doll said that investors would be well advised to focus on companies with
balance sheet strength, good cash flow characteristics, and some independence
from the economic cycle. Doll`s favored sectors include healthcare, information
technology, and energy, while he maintains a cautious view of financials,
utilities and materials.

Most commodities extended multi-year gains into 2008, peaked, and then
experienced vicious declines, Doll said. "While the peaks were overdone on the
upside, current levels may have overdone it on the downside," he said. "As the
global economy begins to stabilize, we expect commodity prices will find a
bottom and begin to move higher."

In particular, Doll said, stable prices for oil are in the range of $60 to $80
per barrel, compared with the $40 range reached at year end.

Corporate/Muni Bond Spreads Over Treasuries Will Narrow

As fear levels recede and confidence is slowly rebuilt in `09, the yield spread
for corporate, high yield and municipal bonds over Treasuries should begin to
narrow from the current very wide levels, Doll said.

"Current spreads are implying catastrophic results in terms of failures and
bankruptcies," he said. "While there are undoubtedly more bankruptcies to come,
our view is that current spreads have overly discounted the risks, or that
liquidity problems are contributing to the wide spreads."

Predictions for 2009

Here are Doll`s predictions for 2009.

1. The US economy faces its first nominal GDP decline in 50 years.

2. Global growth falls below 2% for the first time since 1991.

3. Inflation falls close to zero in many developed countries, but widespread deflation is avoided.

4. The US Treasury curve ends 2009 higher and steeper than where it began.

5. Earnings fall by a double-digit percentage again in 2009, the first back-to-back drop since the 1930s.

6. High yield, municipal and investment grade corporate bond spreads narrow in 2009.

7. US stocks record a double-digit percentage gain in 2009.

8. US stocks outperform European stocks while emerging markets outperform developed ones.

9. Energy, healthcare and information technology outperform utilities, financials and materials.

10. Stock market volatility remains elevated as periodic double-digit percentage rallies and declines occur.

11. Oil and other commodities bottom and move higher by year-end as emerging market economies begin torecover.

12. The US federal budget deficit soars past $1 trillion as the government continues to grow.

The Scorecard for 2008

Doll also provided a recap of his "10 Predictions" for 2008, along with a
"score" for each prediction.

"2008 turned out to be a year investors would like to forget, but instead will
vividly remember," Doll said. "It was obviously a difficult year for investors,
and we -- along with almost all other observers -- were surprised by the degree
to which the economy and the markets soured. Nevertheless, in a difficult
environment for any sort of predictions, our beginning-of-year forecasts held up
reasonably well."

1. World
growt
h
dips
below
trend
for
the
first
time
since
2002.
Score
=
Corre
ct

2. The
Unite
d
State
s
narro
wly
escap
es an
econo
mic
reces
sion,
but
exper
ience
s a
profi
ts
reces
sion.
Score
=
Half
-Corr
ect

3. The
fed
funds
rate
falls
to
3.5%
or
lower
as
Treas
ury
bond
yield
s
rise.
Score
=
Half
-Corr
ect

4. The
dolla
r
rises
again
st
the
euro,
but
falls
again
st
devel
oping
marke
t
curre
ncies
.
Score
=
Half
-Corr
ect

5. Stock
s
achie
ve a
new
all
-time
high
in
2008
as
price
/earn
ings
ratio
s
impro
ve.
Score
=
Incor
rect

6. Large
cap
and
growt
h
outpe
rform
small
cap
and
value
.
Score
=
Half
-Corr
ect

7. Devel
oping
econo
mies
and
equit
y
marke
ts
outpe
rform
devel
oped
ones
yet
again
.
Score
=
Half
Corre
ct

8. Despi
te
risin
g
above
$100
per
barre
l,
oil
price
s end
the
year
lower
than
where
they
start
ed.
Score
=
Corre
ct

9. Infor
matio
n
techn
ology
,
healt
hcare
and
energ
y
outpe
rform
utili
ties,
finan
cials
and
consu
mer
discr
etion
ary.
Score
=
Corre
ct

10. Democ
rats
captu
re
the
White
House
and
incre
ase
their
lead
in
the
Senat
e,
House
and
gover
nors`
mansi
ons
for
the
first
time
since
1992.
Score
=
Corre
ct

Final 2008 Scorecard:
Correct: 4
Half-Correct: 5
Incorrect: 1
Total: 6.5/10

About BlackRock

BlackRock is one of the world`s largest publicly traded investment management
firms. At September 30, 2008, BlackRock`s assets under management were $1.259
trillion. The firm manages assets on behalf of institutions and individuals
worldwide through a variety of equity, fixed income, cash management and
alternative investment products. In addition, a growing number of institutional
investors use BlackRock Solutions® investment system, risk management and
financial advisory services. The firm is headquartered in New York City and has
employees in 22 countries throughout the US, Europe and Asia Pacific. For
additional information, please visit the firm's website at www.blackrock.com.

International investing involves additional risks, including risks related to
foreign currency, limited liquidity, less government regulation and the
possibility of substantial volatility due to adverse political, economic or
other developments. The two main risks related to fixed income investing are
interest rate risk and credit risk. Typically, when interest rates rise, there
is a corresponding decline in the market value of bonds. Credit risk refers to
the possibility that the issuer of the bond will not be able to make principal
and interest payments. Investments in commodities may entail significant risks
and can be significantly affected by events such as variations in the
commodities markets, weather, disease, embargoes, international, political and
economic developments, the success of exploration projects, tax and other
government regulations, as well as other factors. Index performance is shown for
illustrative purposes only. You cannot invest directly in an index.

The opinions presented are those of Bob Doll, BlackRock Vice Chairman and Global
CIO of Equities as of January 1, 2009 and may change as subsequent conditions
vary. Individual portfolio managers for BlackRock may have opinions and/or make
investment decisions that may, in certain respects, not be consistent with the
information contained in this presentation. 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 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 does not guarantee 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.

©2009 BlackRock, Inc. All Rights Reserved.

BlackRock, Inc.
Bobbie Collins, 212-810-8155
Bobbie.Collins@blackrock.com
or
Brian Beades, 212-810-5596
Brian.Beades@blackrock.com

Copyright Business Wire 2009