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Kensho Stats

These stocks could lead the Dow to its next milestone in this Trump-led economy

A Boeing 737 MAX 8 airliner lifts off for its first flight on January 29, 2016 in Renton, Washington.
Stephen Brashear | Getty Images
A Boeing 737 MAX 8 airliner lifts off for its first flight on January 29, 2016 in Renton, Washington.

Cisco and Boeing may be the stocks that lead the Dow Jones industrial average to its next milestone if the macroeconomic trends emerging under President Donald Trump of faster economic growth, increasing inflation and rising rates continue, a study shows.

There were 17 periods since 1981 that matched the key macroeconomic conditions of today of GDP growth greater than 2 percent, CPI increases greater than 2 percent and a 10-year yield above 2.5 percent, according to Kensho, a hedge fund analytics tool.

During those periods (of varying time lengths), these were the best performing Dow members, on average, according to Kensho:



And here's the performance of the Dow and S&P 500 during these macroeconomic conditions, along with the best performing industries in the S&P 500, on average.


Bottom line: History shows traders should bet on the most cyclical stocks and industries during this emerging "reflation" period.

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