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: $2,384.00
Total Sharpe Income YTD Return: + 2.80 %
Sharpe Income YTD Yield: + 1.93 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 5.80 %
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 …
It never ceases to amaze me.
How much our views of the stock market and of ‘I think‘, and ‘it seems like it should‘ are quite simply … wrong. As we stated in the recent podcast, the market is an auction that you simply cannot predict. Which is why with this ‘Sharpe Income‘ project, we remained faithful to our process. The process keeps us safe.
As I mentioned last week, I had a bearish view of the markets. And the income assets have risen yet again, up +3.94% thus far in 2016. Wells Fargo (WFC), which is up +2.63% as of Friday’s close paid us our dividend on the first of June, and this has been counted in on the spreadsheet and is reflected on the PDF. International Business Machines (IBM) will pay us our dividend on Friday. And then there is the Union Pacific (UNP) dividend that is due at the end of June.
The ETF’s we use for a capital gains strategy gained in the last week. The embedded ‘capital gains’ strategy in this project are now up +1.05% as of Friday’s close. We have some dividends which will be paid from those ETF’s in a couple of days.
Now what to do with all of the cash that is piling up in the background? Once again, I’m going to keep it where it’s at. The project is performing well as the project is up up +2.70% as of Friday’s close. We’re getting paid our dividends. And yes … that cash is piling up. If we can perform well while the cash is piling up, I’ll simply continue to save these incoming contributions.
When it comes to Fixed Income? I’m simply going to sit back, and enjoy the progress.
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.