SHARPE INCOME … Grind it Out

Posted on Sep 12 2016 - 11:45am by Sharpe Trade

The original Sharpe Income post that explains this project 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.


We began this project with only $500. All in an effort to help out the small retail investor 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 the numbers are computed off of Friday’s close …

Total Sharpe Income Balance: $2,762.34
Total Sharpe Income YTD Return: + 4.01 %
Sharpe Income YTD Paid Yield on Cost: + 2.41 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 6.30 %
S&P 500 Index YTD Return: + 4.10 %
S&P 500 Index YTD Maximum Draw-down: – 11.24 %


Ok … where are we on this beautiful Monday morning?

The capital contribution for the week for this ‘project’ has been placed in the category we have reserved for ‘Dry Powder’.  We also had two dividends paid last week.  Microsoft (MSFT) and International Business Machines (IBM).  Both dividends have been recorded.

We’re still flat cash in the embedded ‘capital gains’ strategy, with the exception of the PCY position, that I still want to hold on to.  Our yield on cost, is up to +2.41%.  Try to get that out of a Bank or Credit Union.  And there is the rest of the year, to collect more dividends and get that number even higher.

And I’m sure-as-shootin’ not concerned about a measily -2.45% down day on the Spoos.  That’s not even half-way … to HALF of a stock market correction. 

Past that?   We continue to ‘grind out’ the process over time like someone training to dead-lift in the gym.

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 94 can be found here (numbers computed off of Friday’s close) …

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