Debasement Adjusted CAGR

How it works

The indicator calculates equity performance by adjusting current ticker prices against the M2 money supply, essentially redefining price as a percentage of total money supply growth. It normalizes data to show percentage appreciation since the first visible chart bar, allowing users to select alternative money supply measures like EU-M2.

By tracking how equity values change relative to monetary expansion, the tool computes both Compound Annual Growth Rate (CAGR) and total growth within the selected time range. This methodology provides a macro-level view of investment performance that goes beyond traditional price analysis.

Why it may be useful

This signal offers traders a sophisticated macroeconomic perspective on investment performance by revealing how equity growth relates to broader monetary dynamics. It helps investors understand their investments' real value by accounting for monetary expansion, which can often mask actual investment gains.

By providing normalized growth metrics and comparative analysis against money supply, the indicator helps traders make more informed decisions about long-term investment strategies. It bridges the gap between pure price movement and underlying economic fundamentals, giving a more comprehensive view of market performance.

When to explore it

The indicator is most effective when applied to longer-term timeframes such as weekly or monthly charts, where macroeconomic trends become more apparent. It is particularly useful for investors seeking to understand investment performance beyond simple price movements.

Traders and investors analyzing broad market trends, evaluating long-term investment strategies, or interested in understanding the relationship between monetary policy and equity performance will find this tool most valuable. It is especially helpful for those wanting to contextualize investment returns within the broader economic landscape.

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