The ratio of total U.S. corporate market value to total free cash flow does not exhibit a long-term upward trend, unlike the price-to-earnings ratio.

During the dot-com boom in 2000, stock market valuations were extremely high despite weak corporate free cash flow, representing a period of irrational exuberance.

The belief that firms can realize the productivity benefits of AI without significant capital investment is incorrect.

The decline in the U.S. net foreign asset position was significantly driven by the appreciation of foreign investments in U.S. equity markets, which outperformed global markets.

The widespread adoption of AI is likely to cause a further reduction in the labor share of national income.

A 2000 paper by Hobine and Jovanovic argued that low stock prices around 1980 were due to market uncertainty about the winners and losers of the impending IT revolution.

In the U.S. corporate sector, wages and salaries as a share of output fell by approximately 8 percentage points between 1980 and 2022.

The labor share of economic output in the U.S. has been declining over time, with a larger portion of income going to firm owners and a smaller portion to workers as wages.

The current wave of AI technology is more likely to replace knowledge workers than low-skill manual laborers, reversing previous automation trends.

The approximately 50 firms driving most of the U.S. stock market's value growth are the same firms that have experienced the fastest growth in free cash flow.

A small number of firms, approximately 50, account for most of the growth in total U.S. stock market value.

The U.S. net foreign asset position has been declining rapidly over the last 10 years.

The ratio of U.S. corporate market value to free cash flow was the same in the second quarter of 2022 as it was in 1980.

Standard U.S. national income accounts, compiled by the Bureau of Economic Analysis, classify exercised stock options as part of wage income.

Corporate free cash flow has grown faster than corporate earnings because firms have increased earnings without a proportional increase in capital investment.