Jim Cramer’s Charitable Trust is making moves in the stock market, selling 100 shares of Morgan Stanley at roughly $100.56 each. This decision comes as the S & P 500 Short Range Oscillator signals that the market is very overbought, prompting the trust to take profits and stay disciplined in their investing strategy.
With this sale, the trust will own 1,150 shares of Morgan Stanley, decreasing its weighting in the portfolio to 3.62% from 3.93%. Despite the bank’s solid 3.4% annual dividend yield and healthy buyback, the trust is trimming its position to lock in gains and avoid potential losses in case the market cools off.
The decision to sell comes as bank stocks have been performing well, with Morgan Stanley reaching a new one-year high. However, recent news of Games Global withdrawing its planned IPO due to market conditions has raised some concerns, although the trust believes this is likely a one-off situation.
Overall, the trust will realize a gain of 12% on the Morgan Stanley trim, reflecting their commitment to being disciplined investors who take profits as stocks move up. Subscribers to the CNBC Investing Club with Jim Cramer will receive trade alerts before any trades are made, ensuring transparency and accountability in the trust’s investment decisions.
