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 $500. All in an effort to help out the small retail investor understand the importance of growing an income account, as opposed to a trading account. The following numbers are taken from our PDF that is attached below. Remember that the numbers are computed off of Friday’s close …
Total Sharpe Income Balance: $2,339.69
Total Sharpe Income YTD Return: + 1.98 %
Sharpe Income YTD Yield: + 1.74 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 4.40 %
S&P 500 Index YTD Return: + 2.70 %
House-Keeping / Maintenance
This week the entire capital deposit is placed in our “dry powder” category. Simply put, capital we keep on hand that we can use in any aspect of the project in the future. So our cash on hand is reserved thusly …
Ok. Enough about taking vacations and gallivanting around the countryside. It’s time to get back to making money.
Although I had a bearish view, our income assets rose nicely last week while I was on vacation. They are up +3.10% thusfar for 2016. We also have a few dividends incoming. Wells Fargo (WFC), which is up +3.22% as of Friday’s close, will be paying a dividend tomorrow. International Business Machines (IBM) will pay us our dividend 9 days after that. And then there is the Union Pacific Dividend (UNP) that is due at the end of June.
The ETF’s we use for a capital gains strategy are flat at the moment. But that’s ok. We will usually be re-balancing those assets every 30 days, to 120 days. So it can be let go for a while. Dividends on SHY and TLT will be paid near or around 7 days from now.
Then, there is the aforementioned cash that is building up in the background.
Which is a bit interesting.
The cash is piling up in the background from our capital deposits, and at the same time, the project is performing quite well.
With new cash to allocate.
Remember last year I had stated that capital deposits would make the entire project more maneuverable? More adaptable? Well, you’re see an example of that now. The account is performing quite well and we have capital we can deploy at will.
So what to do with it?
Well at the moment, the project is performing well? I’ll simply keep the cash where it’s at. We’ll have to see if the market forces a decision upon me, one way or another; what to do with that cash. If we can pile enough of it up? We could split it between a new income asset purchase, as well as the capital gains strategy.
But for the moment … we’re making money. The sun is shining. Enjoy it!
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.
We continue the Sharpe Income project with this next entry.