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: $4,100.54
Total Sharpe Income Project Return 2016 Forward: +11.98%
Total Sharpe Income YTD Return: + 4.53 %
Sharpe Income Total Yield: + 4.63 %
Sharpe Income YTD Paid Yield on Cost: + 1.64 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF YTD Return: + 2.40 %
S&P 500 Index YTD Return: + 9.85 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
Dividends were paid in the ‘Income Segment’ last week with the monthly PFF dividend. This has been recorded on the spreadsheet (link below).
We are ‘shoring up’ our ‘reserve cash’ as of late, and therefore we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’. Once again … we are not segmenting the capital to cash for ‘Income Asset’ purchases in the future. We are not segmenting it to cash for future ‘Capital Gains’ Trades. We are simply sticking that capital in ‘Reserve Cash’ … where it will stay.
Thus, the cash is reserved thusly …
Total Cash: $776.25
Income Assets Cash: $108.65
Capital Gains Cash: $517.60
Reserve Cash: $150.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Reserve Capital: $150.00
As we reiterated last week, the project is now sort of on ‘cruise control’. Of sorts.
But please do not mistake this for ‘passive’ investing. Personally (and I realize this is just me), but I think the entire ‘passive’ vs. ‘active’ investing concept is farcical at best. I do not believe there is such a thing as ‘passive’ investing.
You make a decision, and put some money down on the line according to the periodicity with which you wish to be involved; according to pre-determined objectives.
Now, if an individual does not want to pay attention to the assets he purchased if done on a longer periodicity? That’s definitely their choice. But I call that ‘inattention’. Not ‘passive investing’.
Make no mistake … we may not be making active moves? We may contributing the capital in the same way for the last few weeks? But this is not ‘passive’ investing. Because I don’t think there is any such thing. There is either trading responsibly and reviewing your process actively … or being a goof, and being inattentive to your risk.
If you want? I suppose you could say that we are “actively” doing nothing at the moment in this particular week, but are still quietly ‘active’ and responsibly keeping an eye on our risk. We ‘actively’ review ‘the troops’ as it were. It’s simply that our time-frame, or periodicity … is long-enough such that the decisions and moves are farther inbetween one another. But we are reviewing our processes ‘actively’.
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, and remember that we are currently running a promotion on the short-term courses.
We continue the Sharpe Income project with this next entry.