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 $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: $2,263.99
Total Sharpe Income YTD Return: + 0.82 %
Sharpe Income YTD Yield: + 1.74 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 5.60 %
S&P 500 Index YTD Return: + 0.46 %
House-Keeping / Maintenance
We received a dividend last week from American Express (AXP). This has been counted in towards the projects total, and entered on the spreadsheet. This week the entire capital deposit is placed in our “dry powder” category. Simply put, capital we keep on hand that we can use in any aspect of the project in the future. So our cash on hand is reserved thusly …
How do you like them apples?
Here I was beginning to believe that last week I had prematurely turned bullish on stocks, and the market was about to fall apart.
Only to have the market rally 1% today, off of the lows.
To be clear, at the moment I am neither bullish, nor overly bearish on the stock indices. I think that for the moment (and this can change in a heartbeat) that we are simply stuck in an overall trading ‘price channel’, or range, between 2029 and 2100. The chop-fest is still with us.
But what is important here is that this rally buys us time.
Time to collect more in the way of dividends from our income assets.
Time to stack more capital contributions into the project.
Because as time passes and we build up our cash reserves? The direction of the stock market will has less and less impact to what we are dong with this project. It removes that concern and anxiety over market direction, out of the picture. All while we collect our dividends, and buy more income assets.
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.