The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.
We continue the discussion from the last entry.
We began this project with only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, understand the importance of growing an income account, as opposed to a trading account. Remember that these numbers are computed off of Friday’s close and are updated each week. It’s live … as it happens …
Total Sharpe Income Balance: $4,281.66
Total Sharpe Income Project Return 2016 Forward: +11.50%
Total Sharpe Income YTD Return: + 4.05 %
Sharpe Income Total Yield: + 5.04 %
Sharpe Income YTD Paid Yield on Cost: + 2.05 %
Total Sharpe Income YTD Maximum Draw-down: – 1.53 %
iShares Barclay’s IEF YTD Return: + 4.90 %
iShares Barclay’s IEF Total Yield: + 4.43%
S&P 500 Index YTD Return: + 9.94 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
We were paid our International Business Machines (IBM) dividend last week. This has been accounted for on the spreadsheet. This raises our total yield on the project up to +5.04%; contrasting to the benchmarks’ yield of +4.43%. Since 2016, the Sharpe Income Project is up +11.50%; contrasting to the benchmark’s return of +5.90% for the same time-period.
We were also paid our TLT and SHY dividends last week. This has also been accounted for on the spreadsheet, and in the records. Remember that we do not count those dividends towards our income yield. The TLT and SHY dividends are in a separate ‘trading segment’ of this project, and therefore, not counted as ‘income’ on the project.
Speaking of the ‘trading segment’, again … we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’ but it is ‘segmented’ or ‘earmarked’ or ‘reserved’ for the cash we will put towards the embedded ‘capital gains’ or ‘trading strategy’ that is within the project. The next time we ‘re-balance’ that section of the project, we will then pour what we have saved up on the side, into said ‘trading’ segment of the project.
Thus, the cash in the project is reserved thusly …
Total Cash: $988.21
Income Assets Cash: $116.81
Capital Gains Cash: $521.40
Reserve Cash: $350.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $50.00
For Simple Reserve Cash: $300.00
So settle in to this particular routine. Because I can tell you right now … that with the exception of when we ‘rebalance’ the trading segement? This is going to be our new course of action in the upcoming weeks.
In the meantime, we get to enjoy the plethora or ‘slew’ of dividends this month that will continue to ‘beef up’ the Income Assets, performance, and yield of the project overall.
The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.
The supplemental information on the forums of the Short-Term Trading Course describes the process behind the Sharpe Income project.
We continue the Sharpe Income project with this next entry.