State Street (STT) has advanced sharply since the start of the year and is now close to my $80 price target.

The rise is largely due to the hope that additional economic stimulus will lead to a rise in interest rates that would benefit the company.

However, I think that the market is overestimating the potential for higher rates, while underestimating the potential impact of a corporate tax increase on STT’s earnings. Therefore, let’s lock in close to a 20% gain.

Sell STT.