Gradient-Descent

Debasement Adjusted CAGR

Equity growth may appear less significant when juxtaposed with the expansion of the money supply. This is because markets tend to adjust prices to reflect changes in money supply almost immediately.

Our indicator offers a unique perspective by adjusting the current ticker price for the M2 money supply and normalizing this data to show the percentage appreciation since the first visible bar on the chart. Users can also select alternative money supply measures, such as the EU-M2, via the indicator's settings.

This approach essentially redefines the price as the "growth of the relative share of the total money supply," providing a novel lens through which to view equity performance.

Additionally, the indicator computes both the Compound Annual Growth Rate (CAGR) and the total growth observed from this adjusted standpoint. These metrics are calculated within the context of the selected time range, adding depth to the analysis.

Although this indicator is compatible with all timeframes, it is primarily designed as a macroeconomic tool. It yields the most meaningful insights when applied to longer-term perspectives, such as weekly or monthly timeframes.

This tool builds upon the foundational work presented in the "Inflation Adjusted Performance Ticker," accessible at Inflation Adjusted Performance Ticker, enhancing its application by normalizing the results and computing CAGR and total growth.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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