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: $2,243.93
Total Sharpe Income YTD Return: + 1.04 %
Sharpe Income YTD Yield: + 1.66 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 5.20 %
S&P 500 Index YTD Return: + 0.68 %
House-Keeping / Maintenance
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 …
We received our SHY dividend last week. This has been recorded on the spreadsheet.
As you see, we now have more cash set aside in our ‘dry powder’ category. So do we deploy that reserve cash to a dividend asset purchase? Or to our capital gains strategy?
There may not be a ‘right’ or ‘wrong’ answer.
At the moment, I’m watching some stock indices and other ‘risk’ assets through the lens of our processes. Do we rally farther? Or was this simply a ‘relief rally’ and we begin to fall lower once again?
There’s no way to know at this point. How I move that cash, whether it be to a dividend income purchase or to the capital gains strategy, will probably depend on what ‘risk’ does moving forward.
I will say that the income stock I have my eye on, more than any other, is still Medtronic (MDT).
But for now, I’m simply going to pile up the cash. Watch and wait to see what the market delivers in the next few days …
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.