SHARPE INCOME … Stepping Back to Review the Plan

Posted on Aug 10 2015 - 10:38am 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.


Of the capital contributed this week, we moved 92% of this contribution towards the category reserved for purchasing 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’ …

08_10_15_SharpeIncome_CapitalAllocations

We also received three dividends.  One dividend from American Express (AXP) for growing the income portion of the project.  And two dividends posted in the ‘Capital Gains’ category; one from TLT and one from JNK.

At this stage of the game, we are still growing the project.  We’ve purchased a few instruments for yield, but really, it’s still in the ‘beginning phase’.  We’re building the foundation.  So let’s step back a minute and look at what we are focusing in on … moving forward for the next couple of months.  In essence?  What is the plan, until … let’s say … October?

Capital Gains:  We will be concentrating on the ‘long-term capital gains’ strategy that is nestled within the account.  As we stated last week, once this strategy is complete we can use this as a type of ‘short-cut’ to grow the income portion of the account.  At the same time, it will provide some downside protection to the project as a whole.  But first … we have to complete purchasing the assets in this category.  Thus, as we have stated, we will concentrate our weekly capital contributions to this category.  The capital gains assets we regularly purchase are TLT, JNK, IVV, PCY or QQQ.

Income Assets:   We are still in a position to purchase income assets.  So we are not ‘out of’ that game at the present time.  Of the assets that I currently use for income?  I’m still primarily interested in purchasing Union Pacific (UNP).  We have the capital ready to go.  But we are simply exercising patience, and waiting for the stock to stop falling in price.   And, we are still contributing 8% of our weekly contributions towards our ‘dry powder’, so we are also quietly building up some capital in order to purchase another asset.  Remmeber, the assets we buy for income at the moment are MDT, IBM, AXP, CL, UNP, MSFT or WFC.

So that’s the plan for the next few months.  We will work at completing the ‘foundation’ of the project.  We will continue to save capital to purchase capital gains instruments.  Save some cash on the side for income purchases.  Wait for Union Pacific (UNP) to stop falling so we can purchase that stock for income.

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 37 can be found here (Numbers computed off of Friday’s close) …

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