Over the last 5 years the M2 money supply has grown at a rate of 6.6% on average, the S&P 500 has grown at 13.4% on average.
Clearly inflation is a large portion of the return, but it isn't all of it. The stock market produces real return.
Discussion
** if you include re-investing dividends, you'd be at 15%-16% return on the S&P over the last 5 years.
If you look over a longer timeframe than just 5 years it gets closer. 😉
But I agree that good companies produce real returns but the index average not really over decades.
arguably it would be more favorable to your case just looking at the past 5 years as the money supply has greatly increased.
since 1960 M2 is 6.88%. nominal stocks are around 10-11%. so a real return has been made to the stock investor