Sell USB Capital VIII (USB-PG)

04/17/2009 9:17 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Shares of USB Capital VIII (USB-G) -- what I've called US Bancorp, which I preferred for the sake of simplicity -- have crossed above my $18 target price (for February 2010). I'm going to take my profits here with this strategy in mind. I think we're in the midst of a bottoming process for the stock market. I expect we'll get a reversal of the current rally sometime relatively soon as part of that process. Right now too many sectors are pressing up against resistance levels (like the 200-day moving average) for me to feel that the short-term risk/reward ratio favors risk-taking. Once we get that correction (if we get that correction) and take some of the risk back out, I'll look to put this money to work in the financial sector, quite possibly in a common stock with more upside than a preferred issue has. I'm selling this position with a 17% return (including dividend) since I added it to Jubak's Picks on Feb. 10.  (Full disclosure: I will sell my personal position in USB Capital VIII three days after this column is posted.)
  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Recession Fears Overstated
03/25/2019 10:38 am EST

While the yield curve recently inverted, there are no clear sign of an imminent recession, notes sen...

Keyword Image
A Vanguard for Energy Investors
03/25/2019 5:00 am EST

Vanguard Energy Fund Investors Shares (VGENX) is a good choice for investors who want exposure to th...