The Research Of Investment Clock In China’s Capital Markets

In this paper, Merrill Lynch Investment Clock is used as the theoreticalframework to discuss the application of the theory in the China’s capitalmarkets.Firstly, the article introduces the relationship between the business cycleand assets allocation, especially focusing on the theory of Investment Clock.After analyzing the characterization of the different assets, the article uses theInvestment Clock theory to select economic indicators in line with Chinesecharacteristics, and then divides the year of2000to2013into differentphases of the business cycle. After that, the article analyses the performancesof the different assets in the specific phase of the business cycle in China,while comparing the return with that of the USA, and reaches the conclusionsin China. At the end, the article also explores the applicability of the theory inChina.