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We are buying 50 shares of Honeywell at roughly $212. Following the trade, Jim Cramer’s Charitable Trust will own 400 shares of HON, increasing its weighting to 2.25% from about 2%. The market is rallying on Thursday on increased expectations for interest rate cuts, following a roughly in-line August consumer price index (CPI) report and a spike in initial jobless claims. With Fed easing on the way and interest rates expected to fall , we’re adding shares of an industrial stock that will benefit if lower rates translate into a pickup in the economy. Honeywell shares have dropped more than 5% since we last added to our position in late July. One reason the stock has lagged its peers over the past few months could be related to spin purgatory — the idea that breakup stories are stuck in a standstill until investors become more interested closer to the completion date. Honeywell’s breakup is complex. It is spinning off its Solstice Advanced Materials business in the fourth quarter, and then sometime in the second half of 2026, it will separate its aerospace division from automation. The aerospace breakup is the event we’re most looking forward to, but we’re expecting the Solstice spin will mark the beginning of unlocking value. Separately, we would sell some Broadcom today if we were not restricted from trading it. Shares of the AI chip, networking, and infrastructure software company are up nearly 20% since reporting earnings last week. Our Broadcom position was already one of the largest in the portfolio before the quarter was reported, but its outperformance over the past few days has caused the position size to swell to well over 5%. Historically, we limit positions from getting too big. Even though Broadcom’s custom AI accelerator future remains bright — and adding a new customer in what is likely OpenAI was a huge win given its level of expected spending — it’s prudent to right-size the position and lock in gains after this big run. (Jim Cramer’s Charitable Trust is long HON and AVGO. 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.
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