SHARPE INCOME … A Beautiful Winter Stock Market

Posted on Feb 8 2016 - 4:40pm by Sharpe Trade

The original Sharpe Income post that explains this project can be found here.

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. 

Sharpe Income Balance: $1,779.86
Sharpe Income YTD Return: – 6.49 %
Sharpe Income YTD Yield: +0.00 %
Sharpe Income YTD Maximum Draw-down: – 6.77 %
iShares Barclay’s IEF Return: +3.90 %
S&P 500 Index YTD Return: – 8.02 %

You’re going to have to forgive us for running a little bit late with today’s entry.  

I, along with the 41% of Americans who called in late to work today … blame the Superbowl. 

Once again, this week we are are placing the entire deposit towards the cash we have reserved to buy a bit of Wells Fargo (WFC). As we said some time ago, we wanted to work a bit more on our income assets in 2016. As yet, the project has not purchased this stock.  I don’t think Wells Fargo (WFC) is presenting itself as a ‘buy’ quite yet.  But I want to be ready when that time comes.

Wells Fargo (WFC)
One Hour Chart

wells-fargo-wfc-one-hour-chart-dividend-sharpe-trade-02-08-16

Also remember that we have received and recorded the TLT dividend from last week.  We will receive the JNK dividend in a few days time.

On this winter day of February 8, 2016, the market closed down 26.61 points, or 1.42%.

S&P 500 Index (SPX)
Daily Chart

sp500-chart-spx-daily-chart-dividend-sharpe-trade-02-08-16

As far as our performance is concerned?  We think that is just beautiful.

Union Pacific (UNP) is up a handle; and when the market was down 50 points earlier in the day, it was still green.

Union Pacific (UNP)
One Hour Chart

union-pacific-one-hour-chart-dividend-sharpe-trade-02-08-16

Our capital gains strategy is beating the market, and has been beating the market.

Sharpe Income Capital Gains Strategy
2016 Year to Date

sharpe-trade-free-capital-gains-strategy-dividend-passive-income

And we are building to a point where we will have more cash to deploy both for Income Assets as well as Capital Gains assets once we feel it is time to take a measured risk and buy.

That time is not now.

But personally, I am loving how this year is shaping up 

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.

The Sharpe Income PDF breakdown for Week 63 can be found here (numbers computed off of Friday’s close) …

1 Comment so far. Feel free to join this conversation.

  1. Mappy February 9, 2016 at 8:39 pm - Reply

    Cash is currently king. Where it drops no one knows, but I hope to be there again with cash in both hands ready to buy.

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