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

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.

Disclaimer

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