Jim Cramer's Charitable Trust is shifting its financial positions, selling half its Morgan Stanley shares to invest in Goldman Sachs. The move comes after a Fed-driven selloff pushed the market into oversold territory, prompting Cramer to look for buying opportunities.
We're selling 375 shares of Morgan Stanley at roughly $122 each. In addition, we're initiating a new position in Goldman Sachs , buying 83 shares at roughly $557. Following Thursday's trades, Jim Cramer 's Charitable Trust will own 375 shares of MS, decreasing its weighting to 1.3% from 2.6%. The Trust will own 83 shares of GS, with a weighting of about 1.3%. We're looking to put our big cash to work after Wednesday's Fed-driven selloff pushed the market deeper into oversold territory.
At minus-7.86% on the S&P 500 Short Range Oscillator, this is the most oversold the market has been since October 2023. We're looking for opportunities in the market because history suggests it's a good time to do some buying when the Oscillator gets this far into oversold territory. If you bought the S&P 500 after the Oct. 3, 2023 selloff that sent the Oscillator below minus-7, you did well one month later with the S&P 500 gaining about 3%. While looking to buy, we sat out the big 'up open' and didn't purchase any stocks because those are often traps after a big market decline. We'll make some gradual buys once the market settles in. But before we do, we're shaking up our financial positions, selling half of our Morgan Stanley shares to fund a new position in Goldman Sachs. This sale is on an approximate 1-for-1 basis – the sale proceeds from Morgan Stanley will go directly to fund Goldman Sachs with no material change to our cash position. We plan to use our remaining Morgan Stanley shares as a source of funds to scale deeper into Goldman, a stop during Jim Cramer's career on Wall Street. We're downgrading Morgan Stanley to our 3 rating, meaning sell into strength. We will realize a gain of about 46% on stock purchased in early 2022. Morgan Stanley has been a great stock to own in 2024 — up 33% year to date and outperforming the S&P 500. The stock started to catch fire in September when the market realized the Federal Reserve was about to start cutting interest rates
Jim Cramer Morgan Stanley Goldman Sachs Market Sell-Off Oversold Federal Reserve Investment Strategy
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