SHARPE INCOME … Thinking About Swapping Out an Instrument

Posted on Oct 5 2016 - 4:47pm by Sharpe Trade

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

For the free ‘Sharpe Income’ project that we run here at Sharpe Trade, we are actually thinking about swapping out one of our income producing instruments. 

Is it Wells Fargo(WFC)? 

No.  I’m not really concerned about Wells Fargo (WFC) in the slightest.

Specifically we’re thinking about swapping out American Express (AXP).  In other words, selling American Express (AXP) in it’s entirety, and replacing it with another dividend paying instrument.  We have the maneuverability.  At the moment, the entire project is up around ~4.30% for the year, holding American Express (AXP).   So if we dump it, it’s not going to somehow ‘hurt’ us in the future. 

Why are we thinking of selling American Express (AXP)?  Well, we will share that in a few days with the clients of our Short-Term trading course, in the ‘Supplemental Library’ we have created for them.  However, suffice to say for the purposes of this entry that we think we might be able to have the project perform better in the future, replacing it with another instrument.

We have not taken any action as of yet.  We’re still chewing on the idea.  Considering the variables.  At the moment, we’ll stand with American Express (AXP).  But know that this is something we are considering.  Just consider this entry a ‘heads up’, that in the coming weeks, you might possibly see an entry announcing that we are selling American Express (AXP).  Then again, perhaps not.

We’ll just have to continue the project, and how it behaves …

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

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

  1. Fred October 6, 2016 at 10:44 am - Reply

    That’s synchronicity. I swapped AXP yesterday (just before your post) for WFC. And today AXP is downgraded.

    • Dan October 7, 2016 at 4:03 am - Reply

      Heyya mate … Good to hear from you.

      Yeup, we’re swapping it out today. And honestly, it’s not as much AXP (I could probably continue average down on it in the Future, and be more than fine considering the periodicity), but with the yield where it’s at, there’s something else I can do a little better with. We’re swapping it out as well, on the back-end list of the stuff we manage, for that particular Income Assets process.


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