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: $3,843.52
Total Sharpe Income YTD Return: + 2.44 %
Sharpe Income YTD Paid Yield on Cost: + 0.91 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF Return: + 2.70 %
S&P 500 Index YTD Return: + 6.38 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
This week, we are placing 100% of this weeks ‘capital deposit’ in the category segmented to the ‘capital gains’ strategy; which if you remember … was already taken to straight cash. Thus, the cash is reserved thusly …
Total Cash: $2,183.91
Income Assets Cash: $96.35
Capital Gains Cash: $2,037.56
Reserve Cash: $50.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Tier Capital: $50.00
We are doing the same thing this week, as we did last week.
The ‘Capital Gains’ category, or ‘trading’ category is at this point, completely cash …
And again, we added this weeks capital deposit to that category. By doing this, that category has grown by 1.242%. And regardless of what the market is doing, for the sake of this particular portfolio, I want more cash in the ‘trading segment of the portfolio’.
Once again … short and sweet. We adjusted the percentile formula on the “Historical Returns’ tab of the spreadsheet, in order to calculate the ‘return’ properly. We simply allow the ‘Income Assets’ run as they are, and build up the cash in the ‘Capital Gains’ category so there is more cash available in the future for shorter-term trades.
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.