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It would be more helpful to compare S&P 500 vs CPI rather than M2. It's purchasing power that matters to most investors, not the comparison to how much money ex
by etskinner 3y ago
It would be more helpful to compare S&P 500 vs CPI rather than M2. It's purchasing power that matters to most investors, not the comparison to how much money exists.
S&P 500 gained ~40% since January 2020, and CPI gained ~18%.
Even better would be comparing to the total stock market rather than S&P 500. Using something like DWCF or VTSAX
- SantalBlush 3y agoRight, this chart is the epitome of misleading statistics. It was made by someone who doesn't understand what they're talking about, and its intended audience is people who don't understand what they're reading.
- pb7 3y agoRead the author's bio. Do you think it was made in good faith?
- throw9away6 3y agoThe cpi is a bad metric. It does not accurately capture all the cost increases we have seen since covid.
- VHRanger 3y agoFeel free to use PCE or whatever else instead. There's alternatives, and trust me, one of them addresses your gripes. Unless your complaint is very specific, assume you didn't just intuitively out-think a bunch of PhDs whose job is thinking about this
- qez2 3y agoThe post seems to be implying that increase in money supply is synonymous with inflation, but one of the main reasons we print more money is actually to keep up with growth.