SHARPE INCOME … All Your Q’s Are Belong To Us !!

Posted on Aug 24 2015 - 3:12am 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.


Of the capital contributed this week, we moved 92% of this contribution towards the category reserved for purchasing our capital gains assets.  The remaining 8% of the capital contribution was placed towards cash that we simply have ‘on-hand’ in the form of ‘dry powder’.  We have been patiently building capital …

Sharpe-Income-Project-Balance

And of the cash we have on hand, we have organized how we will spend it (this is also in the PDF, attached below) …

Sharpe-Income-Cash-Gains

We have been concentrating as of late on building cash for the capital gains assets.   As we have stated in past entries, every financial institution on this planet, gathers assets, regularly.  Why don’t new retail investors do this?  In just 8 weeks time, according to the rules of this project, we will have contributed more capital than 16% of the account total as it stands today.

Remember … we buy Medtronic (MDT), International Business Machines (IBM), American Express (AXP), Colgate (CL), Union Pacific (UNP) and Microsoft (MSFT) for dividend income.  At the moment, our income this year stands at 1.10 %, which beats our benchmark when it comes to income.

But now we have to concentrate on our capital gains.  We do this buy buying a basket of assets for capital gains, to help out this income project.  Namely, Emerging Markets ETF (PCY), The Nasdaq 100 ETF (QQQ), 20 Year Treasury Bond ETF (TLT), a High-Yield ETF (JNK) and the S&P 500 Index ETF (IVV).

And oh, how the market has cooperated with us!  Overnight, Asia began to melt down even further.  The last time I looked, the overnight U.S. stock futures was down 49 points.

And yes … I could not help but think of the Zero Wing meme.  The markets head lower, as we have been building cash.  We could (not that I am at this time, but we ‘could’) purchase either PCY, IVV, or the QQQ. So that now?  All Your Q’s Are Belong to Us!!

I’ll just bide my time.  For now?  I will let the Q’s just burn.  The time is not now.  But when it is?  Know that I will take some of this cash, and buy either some PCY, IVV, or the QQQ’s.

Oh … and maybe by that time, we will buy an income stock as well.

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

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