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.