SHARPE INCOME … Can You Put in the Time?

Posted on Feb 9 2015 - 8:49am by Sharpe Trade

The original Sharpe Income post can be found here.

The Sharpe Income category be 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.


I had stated that for the purposes of this project I was interested in buying not one, but two different income producing assets that pay monthly dividends.  PCY and JNK.  I would then treat PCY and JNK, along with a few other assets I have yet to mention, and I would treat them all as separate pieces to one trade; as a strategy nestled within this project to add both income and capital gains.  

We picked up JNK last week at $39.14.

What about the other asset?  PCY?  

Well, I can’t buy it quite yet.  And this is for a couple of reasons.

First of all, PCY is dropping a bit in price, and I’d like to see how that plays out.

But the main reason, is that for the time being … we’ve run out of maneuvering cash for this project.

As you can note from the attached PDF below, after this weeks deposit, The Sharpe Income project has $138.30 in cash.  Personally, if I bought $279.98 worth of JNK last week, I would like to buy about $600.00 worth of PCY.    PCY is more ‘stable’ in terms of price movements, and if I buy more PCY, than this stablizes out the behavior of both assets working in tandum.  And again, we simply don’t have $600.00 in the project at this time.

So I wait.

I will continue to add cash per the rules of this projet.

When I can make a purchase … I will.

The beauty of this strategy is that beginning on any Monday of the year?  We’ll know that we have $1,300.00 of capital deposits to come in the next 12 months.  So really, all that is required with this sort of strategy in addition to knowledge about the markets and a small amount of money each week?  Is patience.

Persistence.

You have to be willing to put in the time.

Although this only takes minutes per week to do … that does not mean that we treat such projects as a ‘hobby’.  Hobbies you can pick up, and put back down, and not take any action with for months on end.  Perhaps years.

This is not a hobby.

This is not a game.

It’s growing a Fixed Income account to provide your household with income.

I don’t treat my income, as if it were a game, or a hobby.

So we simply persist, put in the time … and continue to build and move the account forward.

Actionable View of Markets for Sharpe Income

We put in the time.

We allow our capital contributions to build the account up once again, so that we can look at more purchases.

In the meantime, we have some of our first dividends coming in.

IBM has gone ‘ex-dividend‘, meaning that since we have held IBM during this time, we are entitled to the next dividend paid on March 10, 2015.  And at the beginning of each month, JNK will begin to pay us dividends as well.

We put in the time, persist, and let let these cash dividends pile up.  Because as we will discuss in later entries for this project, we can use such dividends to catapult the account forward, and grow what we are doing here at an accelerated rate.

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

The Sharpe Income PDF breakdown for week 11 can be found here …

2 Comments so far. Feel free to join this conversation.

  1. Christopher April 15, 2015 at 12:36 am - Reply

    The articles says, “We picked up JNK last week at $38.14”

    Think it is meant to say $39.14. Forgive me if I’m wrong.

    • Dan Shy April 15, 2015 at 7:45 am - Reply

      Yeup … you’re right.

      Good catch.

      🙂

      Dan

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