SHARPE INCOME … “Income Asset #3” Is …

Posted on Jan 3 2017 - 12:21pm by Sharpe Trade

(We continue ‘The Sharpe Income‘ Project from the previous entry)

As you know by now, we run a free “Income Project” here at Sharpe Trade, we call the “Sharpe Income Project“.  It is comprised of ‘two baskets’.  The first is a ‘basket’ or group of income producing assets.  The second ‘basket’ is capital we keep on hand in order to place some short-term trades.  There is a very real reason that we have two such ‘baskets’; and we discuss those reasons in our Short-Term Trading Course.

Regardless, some time ago, we sold off one of the Income instruments.  American Express (AXP).  We stated we were going to replace it with something else.  In the interim, we have simply called this replacement “Income Asset #3”.  We have said repeatedly, that the instrument has a higher yield, but that it’s not yet ready for a purchase.

So what is “Income Asset #3”?

iShares &P US Preferred Stock Index Fund … or “PFF” that carries an annual yield of over 6%.  It was actually an instrument I ran across when talking with Steve from New York City about instruments he uses for yield.  When I looked over the instrument, I thought it would make a nice replacement for our Income Assets, to the lower yielding American Express (AXP).  

We are not yet buying PFF for the project.  But the time for such a purchase may be drawing close.  Around $37.55?  I’m buying PFF for both myself, and this “Sharpe Income” project.  Remember that for the project at this time, all position sizes are as close to $300.00 as we can make it …

(We will continue the free ‘Sharpe Income‘ Project in this next entry)

Leave A Response