Since sometime in the mid to late 1970's -- the Bretton Woods accord was abandoned in the very early 1970's -- inflation has been the most important driver of increases in both nominal earnings and nominal stock prices. That pattern should continue for the foreseeable future and possibly accelerate some in spite of occasional market dips, even severe ones as in 2008-9, which are quickly absorbed by a relentlessly rising market in the face of half-Keynesian economics. Half-Keynesian means that only half Keynes prescription is applied ,i.e., the half involving deficits and leveraging up by government in times of recession, but the other half is not implemented, i.e., the half involving during boom times either a decrease in government spending or an increase in taxation.
Recognition of this is, of course, useless to the trader, but essential for the long-term investor.
The long term investor should concern themselves with purchasing power rather than nominal dollars. In more recent years, when averaged over long periods, the total return of the S&P, once dividends are removed, is about 3-5% in inflation discounted dollars.