SHARPE INCOME … The American Express (AXP) Sale

Posted on Oct 10 2016 - 4:35pm 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 who doesn’t have a lot of money, 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: $2,847.66
Total Sharpe Income YTD Return: +3.48 %
Sharpe Income YTD Paid Yield on Cost: + 2.45 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 6.10 %
S&P 500 Index YTD Return: + 5.37 %
S&P 500 Index YTD Maximum Draw-down: – 11.24 %

We have quite a bit of house-keeping to get through this week.

We had two dividends paid to the segment of the project, that is dedicated to ‘Capital Gains’.  That is, the TLT and SHY dividends.  These have been paid, and recorded on the spreadsheet.

At the same time, we sold out of American Express (AXP) last week.  We did this at a rather opportune time, as we were able to capture the final dividend that will be paid on approximately November 10, 2016.

While we keep the process with clients of Sharpe Trade, let’s talk for just a moment about the sale of American Express (AXP).  It has little to do with American Express (AXP) itself, and nothing to do with a technical chart of American Express.  As well, it offers us a chance to talk about updating the spreadsheet we use to record some metrics for this particular project …

(Video Included. If you’re seeing this entry elsewhere and cannot play the video?  Click this link to go to the exact video entry …)

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

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

  1. Anonymous October 16, 2016 at 10:50 pm - Reply


    What are the plans for the capital gains strategy? Do you plan on using ETFs until the balance is larger, then do a different strategy or continue using ETFs only?

    • Dan October 17, 2016 at 6:15 pm - Reply

      Good question.

      For now … maybe up to $10,000 … I can see using ETF’s only. But after that, there may be some other trades in there beyond ETF’s. I’ll have to evaluate the project, as it evolves.


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