Asset allocation model across business cycle

ML´s Investment Clock is the most famous asset allocation model based on business cycle, but this paper find it mainly provided a framework of analysis and methods, there are still shortcomings and deficiencies. ML´ assumption that stagflation were the fourth phase of business cycle is contrary to traditional economics. Keynesianism view that stagflation is a special phenomenon, rather than a necessary stage. In the first time, this paper modifies and enlarges ML´s Investment Clock from the non-classic business cycle point of view to make it perfect and practicable.