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. The following numbers are taken from our PDF that is attached below. Remember that these numbers are computed off of Friday’s close …
Total Sharpe Income Balance: $3,506.79
Total Sharpe Income YTD Return: + 2.71 %
Sharpe Income YTD Paid Yield on Cost: + 0.09 %
Total Sharpe Income YTD Maximum Draw-down: – 0.63 %
iShares Barclay’s IEF Return: + 0.50 %
S&P 500 Index YTD Return: + 3.45 %
S&P 500 Index YTD Maximum Draw-down: – 0.70 %
We have placed this weeks ‘capital deposit’ in the category reserved as “dry powder”. Cash that we simply have ‘on hand’ and can move about as we wish. Of that cash, 85% of the capital deposit was placed as reserved for a future deposit towards the ‘capital gains’ strategy. 15% of the capital deposit is placed towards reservations for the purchase of more income assets. Thus, the cash is reserved thusly …
Total Cash: $158.12
Income Assets Cash: $41.35
$41.35 Reserved for future MDT purchase
Remaining Cash “Dry Powder” after Reservations for Income Purchases: $0.00
Capital Gains Cash: $16.77
Reserve Cash: $100.00
Cash for Income Assets: $11.25
Cash for Capital Gains Allocation: $63.75
Cash for Tier Capital: $25.00
What’s to say really?
We’re doing … well … awesome.
The ‘Income Assets’ are rallying. The ‘Capital Gains’ strategy is starting to pick up. As we have said previously, as time passes … regardless of what the market overall is doing … we should see the risk-adjusted performance metrics on the project improve. Which we are now seeing. Which again … should only improve with time. We have announced each move we’ve made here at Sharpe Trae, before we made it.
Simply lean back, assume the ‘enjoy it’ stance, and watch the first quarter of 2017 start out with a bang …
Do not forget, that you can discover how we find such income stocks that are held for years at a time, in Sharpe Trade’s Valuation Investing Course. We discuss this particular project, more in-depth via Sharpe Trade’s Short-Term Trading Course.
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.