Downtown Josh Brown

I mean, post the financial crisis, a lot of investors complained about the fact that corporate America wasn't spending, right?

And that the earnings was fake-ish in the sense that it was driven by buybacks and dividends.

And it wasn't real earnings.

So you can measure it historically.

Now we're starting to

to complain, I would say, or to be concerned about CapEx.

But CapEx is usually the better path, right?

So if you say CapEx relative to sales is on an upward trajectory, and that's, let's call that a CapEx recovery, and you could call the opposite something that's not, you would rather, as an investor, from a stock market perspective, from an earnings perspective, from a GDP perspective, and from a job perspective, rather have a CapEx recovery.

That CapEx recovery on the high end is definitely driven by CapEx seen in technology stocks, but it's getting more diffuse.

So all of the sectors now of the 11 gig sectors, we have the data going back in history.

You can measure it CapEx relative to sales.

They're all accelerating and not to such a degree that we saw in any kind of bubble.

I mean, at the bubble time, when you measure it, especially relative to free cash flow at the peak of the bubble in 2000,

Corporate America, in aggregate, was spending three and a half to four times their free cash flow at the time.

We are still under one.

in terms of free cashflow, even with- Outside of the hyperscalers.

Even in addition to them, like so in the aggregate.

So yes, outside them, we're not really anywhere in that bubble territory.

So I say that's six or seven companies over the last six or seven years, but it's not systemic.

So there's idiosyncratic, right?