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: $2,726.20
Total Sharpe Income YTD Return: + 4.48 %
Sharpe Income YTD Paid Yield on Cost: + 2.17 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 6.60 %
S&P 500 Index YTD Return: + 6.12 %
As we sat down to look over the Sharpe Income project this afternoon, we were watching the September contract of the e-mini S&P 500 Futures. And we’ve heard some crazy stories lately, as to the moves of the indices over the last few days.
Which leads us into imparting a bit of a lesson when it comes to the markets. Regardless whether you are trying to run a short-term swing trading process, a valuation investing book, or even a Fixed Income process for passive dividend income such as this Sharpe Income project? Conspiracy theories begin to pop up.
But does this really happen with something as simple as investing for passive income? You better believe it. I wish I had a nickel for every-time I’ve heard someone’s “passive dividend instrument” in the form of a wildly unstable expiring high-yielding trust expires (and expire, they must) … they turn to conspiracy theories, rather than the simple, mundane truth of the matter.
So before we review the Sharpe Income project this week? We discuss these lessons in the form of a ‘story time’ in the following video entry …
(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.