We’re selling 50 shares of Morgan Stanley at roughly $100.04 each and 110 shares of Wells Fargo at roughly $60.65. Following Friday’s trades, Jim Cramer’s Charitable Trust will own 1,100 shares of MS, decreasing its 3.3% weighting to from 3.45% and 2,000 shares of WFC, decreasing its weighting to 3.64% from 3.84%. We’re making two small trims and locking in solid gains in our two bank stocks following their strong moves toward their 52-week highs over the past week. Morgan Stanley has rallied more than 4% and Wells Fargo has gained more than 5% since last Thursday’s presidential debate on the increasing probability of a Donald Trump victory. The bank stocks are viewed as beneficiaries of a Trump presidency due to less regulation and a more accommodative stance on mergers and acquisitions, which would benefit their investment banking operations. The election may be months away, but the market is dusting off the playbook that immediately worked in late 2016. Jim Cramer thinks this recent strength is a good opportunity to take profits in a group prone to pullbacks. These sales will also replenish our cash position which was slightly depleted from several buys this past week. “To me, the question is: why not sell some MS and some WFC for more firepower? The positions were built and forged in tougher times. I think they should be trimmed” Cramer said. WFC MS YTD mountain Wells Fargo vs. Morgan Stanley YTD Bank earnings are also on the horizon, with Wells Fargo, JPMorgan , and Citigroup set to report next Friday. Morgan Stanley, Bank of Americ a, and Goldman Sachs report the week after next. These stocks are historically fickle around earnings, providing a reason to take a little off the table with these stocks near highs. “We have bank earnings beginning next week. These stocks do not react well when their stocks are high going into earnings. We need to keep them on but make them slightly smaller. Very simple” Cramer added. From these two sales, we’ll realize a gain of 12% on Morgan Stanley stock bought in July 2021 and a big gain of 77% on Wells stock purchased in January 2021. (Jim Cramer’s Charitable Trust is long MS, WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
We’re taking some profits in our bank stocks after big runs and ahead of a tricky time
