I’m not talking about time-discounting at all. The point is that real value of stock (and money) is defined with respect to a busket of consumer goods, and that’s the only thing that isn’t being priced-in in advance, it’s always recalculated at present time. As it becomes objectively easier to make the things people consume, real value of everything else (including total return indices of stocks) increases, by definition of real value. It doesn’t increase in advance, as valuation of the goods is not performed in advance to define consumer price index.
I’m not talking about time-discounting at all. The point is that real value of stock (and money) is defined with respect to a busket of consumer goods, and that’s the only thing that isn’t being priced-in in advance, it’s always recalculated at present time. As it becomes objectively easier to make the things people consume, real value of everything else (including total return indices of stocks) increases, by definition of real value. It doesn’t increase in advance, as valuation of the goods is not performed in advance to define consumer price index.