China is expected to report GDP growth of 11.9% tonight. For reference, GDP growth rates for the last four quarters have been 6.2%, 7.9%, 9.1% and 10.7%. While most market strategists are focused on the GDP, the key question for our ZYX Multi-Asset Global Allocation Model is the inflation rate. In our last allocation model update, we projected rising inflation and rising interest rates in China. Such a scenario will benefit most of the Asia, but will work against China. Our allocation reflects this scenario in being short Chinese equities, long Taiwanese equities, long Chinese Yuan and short copper .

The model gives precedence to risk control over potential rewards. The model is designed to maximize risk adjusted returns over a long period of time. The model is not designed to maximize absolute returns over short periods of time. During Q1 2010, the model stayed true to its design of giving low risk precedence over return. VERY LOW RISK PROFILE During the quarter, the model maintained a very low risk profile consistent with its design. Diversification across 10 categories/sub-categories Short position in Chinese equities was completely hedged with Taiwanese equities Long position in US large cap equities was completely hedged

For new update on Multi-Asset Global Allocation Model, please visitAllocation Models. www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING VERIFIABLE PERFORMANCE RECORD Every closed trade since 2007, without exception, is included in the performance results. Number of winning positions: 162 Number of losing positions: 10 Average annualized % return per position: 296.77% ………………Check out details .