We’re buying 40 shares of Bank of New York at roughly $143 each. Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 600 shares of BNY, increasing its weighting to about 2.16% from 2.02%. As noted in our earlier trade alerts, here and here , the goal for Thursday was to get more money to work in the non-artificial intelligence part of the market, as investors debate how much further we can really beef up AI stocks, at least in the near term, ahead of a midterm election, which has put data center build-outs and their impact on surrounding communities front and center. This time around, we are adding to our BNY position. Shares have been beaten up since mid-September, along with the rest of the financial sector. We waited and watched patiently. However, with earnings season set to kick off next week, and BNY reporting next Thursday morning, we want to step in now and get at least one more buy on the books before then, which will bring down our overall cost basis. While we acknowledge that higher interest rates are a headwind to loan growth, and that has weighed on the sector overall, we got into BNY precisely because it is relatively insulated versus peers like fellow Club name Wells Fargo . In last month’s initiation trade alert, we noted that roughly 70% of BNY’s revenue streams are fee-based. As a result, BNY is not really levered to the credit cycle, changes in the bond market yield curve, or net interest income (NII). Rather, asset growth (meaning market values ) is a main driver of its fees. Given the stock is down in sympathy with peers that have more operational risk resulting from higher rates, we think now is a good time to step in. (Jim Cramer’s Charitable Trust is long BNY, 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.
