We’re again reducing our energy exposure, trimming an oil stock that’s been on a nice run

We’re selling 35 shares of Pioneer Natural Resources (PXD) at roughly $258.60 each. Following Friday’s trade, Jim Cramer’s Charitable Trust will own 170 shares of PXD, decreasing its weighting to 1.46% from 1.75%. In line with our recent sales of Coterra Energy (CTRA) on Monday and Chevron (CVX) earlier this month, we are taking the opportunity to further reduce our energy exposure by trimming PXD, which has been on a nice run this month. As members will recall, we have viewed our overweight energy as a hedge against our more inflation sensitive stocks. With this sale, we are raising some additional funds into what is the historically difficult upcoming month of September, and putting ourselves in a position to take advantage of any subsequent weakness. In Friday’s address to the Federal Reserve’s Jackson Hole conference, Chairman Jerome Powell said he’s committed to stamping out inflation. The stock market then dropped, taking Powell’s tone to mean that the bigger interest rate increases of late are not off the table. Bond yields jumped. Looking through a stock buyers lens, according the data, it appears the Fed is slowly winning the war on price pressures. Further confirmation came Friday morning when the central bank’s favorite inflation gauge, the personal consumption expenditures price index, eased in July month over month and grew at a slower pace year over year. With Friday’s Pioneer Natural Resources sale, we’re downgrading shares to a 2 rating, meaning we would now be buyers on a pullback. (Jim Cramer’s Charitable Trust is long PXD, CTRA and CVX. 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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