Investing

Here's how the financial markets may perform in Mnuchin's 3 to 4 percent growth world

US President-elect Donald Trump adviser Steven Mnuchin speaks to reporters at the Trump Tower in New York on November 14, 2016.
Jewel Samad | AFP |Getty Images
US President-elect Donald Trump adviser Steven Mnuchin speaks to reporters at the Trump Tower in New York on November 14, 2016.

Donald Trump's Treasury Secretary selection Steve Mnuchin told CNBC Wednesday, "Our most important priority is sustained economic growth, and I think we can absolutely get to sustained 3 to 4 percent GDP, and that is absolutely critical for the country."

How do stocks, bonds, commodities and bonds perform in a 3 to 4 percent growth world?


Using hedge fund analytics tool Kensho, we found there were 15 stretches totaling 1,580 days when GDP was between 3 and 4 percent since 1981. Here is the average performance of major asset classes during those 15 stretches.


Bottom line: If Trump and Mnuchin are able to realize their economic vision, then investors should own commodities and stocks and avoid bonds.

Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.