Honey, got no money,
I’m all 6s and 7s (and 9s)
Mick and Keith
I begin, stepping intrepidly into the realms of the overly personal, by informing you that tomorrow is my birthday. My 66th birthday. Which means I will be beginning my 67th trip around the sun.
To which I only have one thought.
6-7!
If you’re wondering what I’m writing about, you’re not alone. But know this: 6-7 has taken over the world and no one knows why. The phrase was once believed to have originated during the height of the Roman Empire: with senators and the privy council uttering VI-VII, as a precursor to Caesar’s famous phrase Veni Vidi Vici.
This is not correct, however. In point of fact, it was first coined by a Musical Maestro Skrilla – in his Symphony 27 — 3rd Opus for Oboe and Viola (aka “Doot Doot”). And then, somehow, a TikTok video superimposed it upon the persona of upper tier and still-emerging NBA player LaMelo Ball (who happens to be 6’7”). And off we went.
The phrase (often accompanied by an alternating upward/downward move of each hand, as though operating an invisible Slinky) has since dominated the pre-teen/teen lexicon. I first learned it from my older grandsons – age 10 and 8. I asked them what it meant, and they didn’t tell me because they didn’t know. Nobody does.
The inference here is that it has no meaning, which, I reckon is the beauty of it. Near as I can determine and depending upon context it reflects either greatness or mediocrity.
Or (if you’re into dialectics and who isn’t?) both.
I was at least relieved to rule out its association with the misandrist, arguably diabolical phrase 6-6-6, suggesting that a man is only datable if his salary is (at least) 6 figures, he is (at least) 6 feet tall, and his privates measure (at least) 6 inches in length. Though (not to brag) I check each box, I find the standard to be humiliating.
Instead, I prefer 6-7, which one can interpret any way one chooses. And aside from that, I believe it well reflects the realities of the world in which we live, as well as those of the markets in which we invest.
If one takes the effort to look around, one sees helzapoppin’. Lots to do; lots to see. One can go whale watching in Nantucket for example. Or visit the Great Wall of China. Until yesterday, all four of Americas fave sports were operating at full throttle.
There are high-profile regional elections tomorrow – none perhaps more impactful than that for the NYC Mayoralty. None are likely to change anyone’s life much (including in NYC, where the presumptive winner is likely to neither do anywhere near the damage that many fear nor confer the bennies for which many hope). But here’s the best news: it should be a boon to cable viewership and associated advertising revenues.
Referring to the latter, want new bathroom appliances? There’s a company out there that will simply build a new bathtub right on top of your old one and complete the process in a single day. There are supplements which will energize our sorry carcasses, improve our memories and extend, no matter what our anatomical footprint, our most pleasureful romantic interludes.
6-7.
There’s new technology out there which allows us to relax our weary, worried minds by doing our thinking for us.
Again, 6-7.
This last concept dominates the current market vibe – particularly during the Earnings Season. Our best loved companies are reporting blowout results, but experiencing, at least episodically, the wrath of the Investment Community concerned about how much all this is costing.
6-7.
The Government Shutdown carried across the November 1st milestone, where, according to law, it must stop the conveyance of food benefits – allowing both sides of the political spectrum to accuse the other – not only of starving babies, but of doing so purposefully as the main objective of their policy agendas. Meantime, we can look forward to the prospect of a glittering new White House Ballroom to be enjoyed not by us, but by our betters.
6-7.
As expected, the Fed cut overnight rates by 0.25% this past Wednesday. But Powell was a little pissy in his presser, suggesting in particular that we cool our jets on further hackage and thus causing a petulant selloff into the close.
Well, 6-7. But I have a strong suspicion that if he doesn’t cut again at the December meeting (the 10th), Chair Pow will almost certainly be deep sixed (sevened?) by 4(6?)7. Because we are entering the portion of the cycle when the politics of interest rate policy will begin their path towards crescendo. The powers that be must have lower rates by Spring – to goose, among other things, the Housing Market. And they will have them. The process has already begun.
It should thus come as little or no surprise that along with the distressingly (though benign) hawkish tone adopted by Powell in his remarks, comes news that Fed Balance Sheet reduction is at a practical end (for now at any rate). It is at the longer end of the curve where Fed activity will be most impactful. Don’t be surprised if, as opposed to shedding assets, our central bankers do a little shopping.
(Everyone say it with me –) 6-7.
To great fanfare, our heroes at NVDA witnessed their stock breaching into quaint >$5 Trillion territory. This figure, of course, is in eyes-glaze-over realms, but make me rather nostalgic. For those simpler days of 2018, when there as much hand wringing over the prospect of a single company’s (AAPL’s) valuation reaching for the first time to a dainty $1 Trillion.
The new figure is, of course, 5x this value, over a period where U.S. GDP growth increased an impressive 50%. But back in ’18, NVDA market cap, which backed of by the week’s end to an ignominious $4.92T, topped out at about $90B.
6-7, 6-7, 6-7, 6-7, 6-7.
Earnings season continues but we must wait till nearly Thanksgiving ere we are enlightened by the latest NVDA tidings. There’s plenty with which to occupy ourselves in the meanwhile. But one data point which we will be compelled to forego is the October Jobs Report – scheduled for release this coming Friday but postponed due to the (presumably temporary) shuttering of the Bureau of Labor Statistics.
The Fed, which however remains open, continues to project a ~4% growth rate for Q4, which is a heady performance.
Of course, there’s some spooky spots out there. Including that reflected by this little tidbit I unearthed:
I reckon nobody told the credit markets that Halloween is over.
In general, however, I think there is ample cause to embrace our inner 6-7, viewing it not as a wishy-washy non-factor, but rather as a joyful expression of glad tidings to come. Market conditions are on the whole favorable, and this is neither always the case nor a condition that lasts forever.
Because some of these days, 6-7 will also disappear from our awareness, as did its predecessor: Skibidi – another term of no coherent meaning.
So, I say, chin up, y’all. If I didn’t mention it before, tomorrow is my birthday. The start of my 67th trip around the sun. It’s not beginning as I would have willed it, because of the miles between us. I deeply wish it were otherwise and recognize that it’s on me to make it so.
Because now is the time.
And in closing, I have only one more comment to make. But won’t offer it.
Because if you haven’t figured out what it is by now, it’s likely you never shall.
TIMSHEL