Aresearch On Sectors Investment Clock Of China’s Stock Market

In2004, Merrill Lynch published an outstanding research report "The Investment Clock", whichprovided with the concept of investment clock. That is according to the economic growth trendsand inflation trends. The economic cycle can be divided, according to Merrill researchers, intofour phases: recovery, overheat, stagflation and reflation, and then were taken at different stagesof different investment strategies, asset and configuration of different industries.Specifically in the Chinese stock market, we can take specific flexible investment stratigies inbetween the China’s economic cycle. Compared with passitive investment stratigies, this isdefinitely an optimization allocation of securities sectors. It is sure to be more useful forinvestment practice.Bases on my rearch of economic growth and inflation variables modeling and hypothesis test, weexamined the most sectors in China’s stock market, which have a strong regularity correlationwith the economic cycle. And it’s an effective method for research on Chinese stock marketsectors investment clock.