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Dave Collum, professor and financial commentator at Cornell University (Emeritus), compares official U.S. CPI and M2 money supply growth since 2000.
He states CPI averaged 2.0% annually from January 1, 2000, while M2 money supply expanded at 6.5% per year. Collum further points out that S&P capital gains have been 7.0% annualized uncorrected, dropping to 0.5% when adjusted for M2 growth or 4.5% when adjusted for CPI.
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Collum has previously highlighted the divergence between company performance and stock returns, noting in a recent post that Apple’s revenues doubled over ten years while its share price climbed more than tenfold. He has also discussed mounting fiscal challenges, emphasizing skepticism about possible solutions to the U.S. debt and long-term obligations. These earlier comments reflect Collum’s continued focus on structural imbalances in financial data.