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: $4,001.49
Total Sharpe Income Project Return: + 10.75 %
Total Sharpe Income YTD Return: + 3.30 %
Sharpe Income YTD Paid Yield on Cost: + 1.05 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF YTD Return: + 3.60 %
S&P 500 Index YTD Return: + 8.91 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
This week, we are doing something a little different.
We are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’. 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: $696.91
Income Assets Cash: $105.41
Capital Gains Cash: $516.50
Reserve Cash: $75.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Tier Capital: $75.00
Any portfolio like this, when it begins to develop? Needs what we can refer to as ‘Reserve Cash’. So that’s what we are going to work on building up for just a few weeks. The ‘Reserve Cash’.
While we are doing that … the rest of the portfolio can function as it should. Union Pacific (UNP) will be paying us a dividend in a few days time for the ‘Income Assets’. A few days after that, our Preferred Shares (PFF) dividend will be paid. And we will continue to monitor the ETF’s we have in the ‘Trading Segment’ of the project, looking for gains out of placing those trades.
All, while beefing up that Reserve Cash.
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.