Posted on Feb 29 2016 - 10:27am 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 $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 …

Sharpe Income Balance: $1,903.27
Sharpe Income YTD Return: – 3.74 %
Sharpe Income YTD Yield: +0.05 %
Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: +4.70 %
S&P 500 Index YTD Return: – 4.69 %

We recently purchased Wells Fargo (WFC).  We had to drive the cash a little past red-line to make that purchase. This put us in the hole a little bit.  We naturally applied this weeks capital contribution to that hole, as you can see from the Cash Allocations on the PDF …


By next week, that small hole will be filled, and then some.  

So at the moment we’re monitoring our instruments in the embedded ‘Capital Gains’ strategy within this project.  We have a variety of ETF’s, exposed to different areas of the ‘risk spectrum’.  PCY, QQQ, IVV and JNK.  So for you folks that are new … this means that these instruments are all “risk” instruments.  If risk is ‘on’, then they will rally, but in varying strengths due to the nature of these assets.

At this point, we have a nice advantage over the market looking at this strategy, 2016 YTD …


And to be clear … I’m bullish on all of the assets we have in the ‘Capital Gains’ strategy in the short-term.  I’m bullish on IVV, bullish on QQQ, bullish on JNK and bullish on PCY.  We’ll just have to see how far they can run … 

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

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

  1. Christopher March 2, 2016 at 10:04 pm - Reply

    Will you be purchasing anything with the 474.71 cash in the capital gains strategy soon?

    • Christopher March 2, 2016 at 10:05 pm - Reply

      I meant to say 464.71

      • Dan March 3, 2016 at 9:37 am - Reply

        At this point? I’m waiting to see if Risk really takes off here (Seasonally normal in March). A few indcations I have, is that it could. In which case, my mind at this moment, is more to see if the Capital Gains strategy assets will rally. If this occurs, I think TLT could fall.

        So I’m more in the mode of …

        1) Let’s see if TLT continues to fall and provide a buy in a bit later down the road.

        2) Let’s see how much push we can get out of IVV, QQQ, JNK and PCY in the meantime … and let them run …


      • Dan March 3, 2016 at 9:41 am - Reply

        But if IVV peters out, JNK and PCY peters out, and risk sort of just dinks around, and the stock market sinks? I could also rebalance, and take that entire section of the account to cash, and start again; or “Rebalance”

        Regardless, I can see things getting much more active this year, in that section of the account


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