True, that is an average. If you invested in certain companies like Apple, Microsoft, Amazon, NVIDiA or Berkshire they generated real returns but many others didn’t by far.
Discussion
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.
** 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