We're trimming a rotation winner and adding to an exciting new stock

An important development from the financial markets: We are selling 75 shares of Procter & Gamble at roughly $153. 11 and buying 50 shares of Honeywell Aerospace at roughly $238. Following the trades, Jim Cramer's Charitable Trust will own 300 shares of PG, decreasing its weighting in the portfolio to about 1.

It will also own 270 shares of HONA, increasing its weighting in the portfolio to 1. We're peeling off some shares of Procter & Gamble as the stock rallies in Tuesday's rotation out of artificial intelligence winners. We added Procter & Gamble to the portfolio late last year on the idea that it would act like a hedge in the portfolio when the market gets worried about the AI buildout and tech valuations.

Economic Details

That's playing out on Tuesday, with shares rallying over 2% and the tech sector falling almost 3%. Procter could become more than a hedge in the portfolio if we see more signs that it can reinvigorate top-line growth, which is certainly a possibility under new CEO Shailesh Jejurikar. Until then, we'll take advantage of these rally days to lighten up on this position.

From this sale, we will realize a small gain of about 3% on P & G stock purchased in November 2025. With this cash, we're picking up some shares of the newly spun-out Honeywell Aerospace. On Monday's Homestretch , we said we wanted to eventually add to our small Honeywell Aerospace position.

Our thesis is that the company is better positioned to create value for shareholders now that it is a standalone company. However, we also noted that our long-term optimism needed to be balanced with short-term price action. After the stock ran $30 in just a few days, we said we preferred to wait for some weakness before buying.

Analyst Views

Thanks to a late-day reversal, which saw HONA go from $251 to $237 in the final hour of trading on Monday, we've gotten that better price to buy. (Jim Cramer's Charitable Trust is long PG, HONA. 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.

Financial markets are tracking the development closely as investors assess the likely impact.