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: $4,117.08
Total Sharpe Income Project Return 2016 Forward: +11.77%
Total Sharpe Income YTD Return: + 4.32 %
Sharpe Income Total Yield: + 4.63 %
Sharpe Income YTD Paid Yield on Cost: + 1.64 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF YTD Return: + 3.10 %
S&P 500 Index YTD Return: + 10.44 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %
We are ‘shoring up’ our ‘reserve cash’ as of late, and therefore we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’. Once again … 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: $801.25
Income Assets Cash: $108.65
Capital Gains Cash: $517.60
Reserve Cash: $175.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Reserve Capital: $150.00
In our ‘Income Assets’ both IBM and Union Pacific (UNP) got hammered last week through earnings.
And yet you will notice that our Income Assets weathered the storm quite well …
A little bit of a dip, to be sure. But that’s all. Just a small dip.
Our capital gains ‘trading’ segment actually gained last week by a fair margin. And so you’ll notice that despite IBM and Union Pacific (UNP)’s moves … the project as a whole continues to do quite well …
So as a whole last week, I view the moves in IBM and Union Pacific (UNP) as much ‘ado about nothing’. I stated some time ago, that the goal is that as time passes we will see the risk-adjusted performance metrics for the project improve.
And here we are.
The goal at this point, is to get them to improve to an even greater degree.
And we do that? By simply grinding the whole project ahead, further still …
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, and remember that we are currently running a promotion on the short-term courses.
We continue the Sharpe Income project with this next entry.