Michael Mann 
Shortly after the opening bell, we will be selling 150 shares of Morgan Stanley at roughly $128.81 and 240 shares of Wells Fargo at roughly $71.02. Following the trades, Jim Cramer’s Charitable Trust will own 750 shares of MS, decreasing its weighting to roughly 2.5% from 3.06% and 2,100 shares of WFC, decreasing its weighting to roughly 3.86% from 4.33%. U.S. stock futures surged Wednesday after Republican nominee Donald Trump was elected president, according to NBC News projections . One of the biggest winners of the so-called Trump trade are the banks and financials. There’s strength across the board in premarket trading, with Wells Fargo ripping 10% higher, Morgan Stanley up more than 8%, and fellow Club holding BlackRock jumping more than 4%. With Trump poised to return to the White House, investors are buying up the banks for several reasons. A Republican administration will likely be more friendly to the banks with less regulation, meaning fewer fines and more opportunities to grow their businesses. Wells Fargo is one of the biggest winners in the group because there are greater odds its Federal Reserve-imposed asset cap will be removed. The mergers-and-acquisitions environment should be much more friendlier, meaning more deals and transactions will be made. That’s very positive for the future earnings of investment banks like Morgan Stanley and Goldman Sachs . There’s also an assumption that the Tax Cuts and Jobs Act of 2017 will be renewed, and this legislation โ enacted during Trump’s first term โ was very bank-friendly. This all amounts to a great setup for the banks, but we are sellers into Wednesday’s strength because these moves look a little too far, too fast. We still want ownership of the group, but we don’t want to give back these big gains. Plus, it will take time for these positive developments to materialize into earnings per share. From these sales, we’ll realize a solid gain of roughly 30% on Morgan Stanley stock purchased in November 2021 and January 2022, and a fantastic gain of 112% on Wells Fargo stock purchased January 2021. (Jim Cramer’s Charitable Trust is long MS, WFC and BLK. 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.
