SHARPE INCOME … Clearing Up Possible Misunderstandings

Posted on Aug 1 2016 - 11:56am 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.  Remember that the numbers are computed off of Friday’s close …

Total Sharpe Income Balance: $2,621.05
Total Sharpe Income YTD Return: + 4.28 %
Sharpe Income YTD Paid Yield on Cost: + 2.17 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 8.00 %
S&P 500 Index YTD Return: + 6.34 %

House-Keeping / Maintenance
The PCY dividend was paid last week inside of our embedded ‘Capital Gains’ strategy; and has been accounted for on the spreadsheet.  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


Moving Forward
As I looked over the project this week … I thought we could clear up some possible misunderstandings …

(Video Included. If you’re seeing this entry elsewhere and cannot play the video?  Click this link to go to the exact video entry …)

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 88 can be found here (numbers computed off of Friday’s close) …

6 Comments so far. Feel free to join this conversation.

  1. mappy August 2, 2016 at 10:29 am - Reply

    I’m in all cash from last week. Sold the QQQ, sold TWTR for a small loss.

    I need to learn to be more patient when I have the right idea.

    But, I’m telling you now, I’m glad to be in all cash!

    • Dan August 2, 2016 at 11:16 am - Reply

      Yeup 🙂 We JUST hedged out … seriously … like just now on all of our longs.


  2. newlife August 3, 2016 at 1:02 am - Reply

    All my stops were hit yesterday and today. Saw zero hedge say something about bullishness and thought I probably got out at a good time 🙂

    • Dan August 3, 2016 at 4:37 pm - Reply



  3. Christopher August 4, 2016 at 9:18 pm - Reply

    how are the conference calls coming?

    • Dan August 4, 2016 at 11:14 pm - Reply

      Great question.

      They’re coming. Slow but sure. Really impressed with UNP’s ability to balance operations with such a drop-off in volumes.

      Still have to get to CL. I’ve been delaying in getting to it, but I hope to do it tomorrow. Then there is MDT on August 25th. Past that, I think I’m caught up.


Leave A Response