Take Big Profits in Big Bank

Despite a large rise in the number of COVID-19 cases and some signs that the economic recovery is slowing, stocks are continuing to rally to record-breaking levels.

As a result, some of our names are getting extended. The most notable of which is Citigroup (C). It is up over 40% since last month’s recommendation and has flown past my $50 target.

While I still expect a strong recovery in earnings next year, a lot of good news is now priced into the stock. Citigroup also could be vulnerable at its current prices, should the economy disappoint. Sell C to lock in profits. I will have a replacement in next week’s Value Authority monthly issue.

If you are an Inner Circle subscriber who is following the Model Portfolio, sell C.