Downtown Josh Brown

So the recent hookup is still – we're still, from an aggregate sector perspective, underspending in terms of CapEx relative to free cash flow.

Well, don't you think maybe it's just because that's what we lived through?

Meaning that there hasn't been a CapEx cycle in so long.

Correct.

CapEx bubble.

Oh, for sure.

I'd say like, again, back to that sort of data.

If you say a CapEx recovery is when you're spending CapEx relative to your sales base and the opposite, most CapEx cycles actually generate growth.

rather than create a bubble that deters it.

So, I mean, if you think about it just in the basic, like the virtuous cycle of the US economy, when corporate America sees growth and spends for growth, they create growth by spending, creating jobs.

So it's in some ways, it reflects the durability of the cycle.

Oh, absolutely.

No, I won't call anybody out.

Well, I think the most interesting part is I think that most investors, and I think for people who study history, this is the exception, but most investors want the equity market to reflect good times and good diffuse times, meaning that not just a few companies are spending, but many companies are spending.

There is good growth.

There is good job growth.

But when you study history, the equity market doesn't always reflect good times.

In fact, if you had to say, if you dropped a quant onto it, and I'm kind of a quant,

And you said, is the equity market reflective of good times or is that a hedge against bad times?

You'd almost say that it's more often the hedge against bad times.