The original Sharpe Income post can be found here.
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.
Weeks have passed. We have been piling up cash from each weekly capital contribution.
On Sunday evening, the U.S. stock market futures opened lower by approximately 25 points.
Lately, it’s as if the market is ‘cooperating’ so to speak, and handing me a gift. As we save each weekly capital contribution, the markets head lower. So we have more cash as time passes, as stock prices dive. Very obviously, the longer this goes on, the better.
For as long as this situation lasts, our maneuverability only improves.
At the same time, lower stock prices, mean higher dividend yields.
It’s just a matter of having the patience to wait, as the situation develops.
I moved 92% of this weeks capital contribution towards the category reserved for our capital gains assets. The remaining 8% of the capital contribution was placed towards cash that we simply have ‘on-hand’ in the form of ‘dry powder’. Our focus at this point, is on saving our capital contributions for the capital gains strategy. Whenever it is that Union Pacific (UNP) forms a bottom on a daily chart (or longer) then we have the cash to purchase Union Pacific (UNP).
JNK will pay us in a few days time. American Express (AXP) will pay us a dividend on August 10th, and IBM will probably not pay us until the beginning of September.
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.