Risk assets and money printing.

SPX tracks the FED printing. Market has it's fractals of course, but overall this tracking is pretty tight. None of the FED money appears to be getting into the real economy. It did so when the stimulus checks were cut, showing as a small upswing in the M2V. This is not meant as a market timing graph, just as an overall graphic of the current situation with risk assets and inflation. Clearly M2V is a deflationary factor though as it continues it's long downward trajectory. The bottom line is asset inflation is a result of money printing, but as it is currently implemented not a factor in consumer price inflation.

This assumes that the FED is in full control of the US dollar money supply.