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: $4,211.12
Total Sharpe Income Project Return 2016 Forward: +11.00%
Total Sharpe Income YTD Return: + 3.55 %
Sharpe Income Total Yield: + 4.72 %
Sharpe Income YTD Paid Yield on Cost: + 1.73 %
Total Sharpe Income YTD Maximum Draw-down: – 1.53 %
iShares Barclay’s IEF YTD Return: + 3.90 %
S&P 500 Index YTD Return: + 9.12 %
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: $930.32
Income Assets Cash: $110.06
Capital Gains Cash: $520.26
Reserve Cash: $300.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
For Simple Reserve Cash: $300.00
And there we go.
For such ‘Income Accounts’, my goal would be to keep the reserve cash at around 5%. At the moment, the reserve cash represent’s 7.1%.
Which means that I don’t have to worry about ‘shorting up the reserve cash’ for some time. We’re good there, until the Project hits a balance of $6,000.00
So now what do we concentrate on? Very logically, in the weeks to follow, we will be building up both the cash available for purchasing more in the way of ‘Income Assets’ as well as building up capital for the ‘Short-Trading Segment’ of the project. That is what is coming up in future weeks …
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.
We continue the Sharpe Income project with this next entry.