April 15, 2010

Consumer price inflation dipped to 2.4 %, from 2.7 % in February, and factory-gate inflation accelerated from 5.4 % to 5.9 % in March. These numbers give the authorities breathing room before having to take measures to cool the economy.

We will be watching fund flows and technicals to see if a change to ZYX Multi-Asset Global Allocation is warranted at this time.

For the time being, the model continues to be long Yuan, Taiwanese equities and Asian residential real estate, and short on copper and Chinese equities.