SHARPE INCOME … A Shopping List

Posted on Nov 16 2015 - 8:26am by Dan

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.

First, a bit of house-keeping …

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:  $1,599.41
Sharpe Income YTD Return: -7.28%
Sharpe Income YTD Yield:  +1.15%
Sharpe Income Maximum Draw-down: -13.05%
IEF Benchmark Return: +1.40%
S&P 500 Index Return: -1.74%
Berkshire Hathaway Return (BRK.A): -12.47%

For the purposes of this particular project, this week I once again moved 92% of this weeks capital contribution towards the category reserved for purchasing capital gains assets.  The remaining 8% of the capital contribution was placed towards the cash we have reserved to purchase Wells Fargo (WFC).  We were paid a dividend by both JNK, as well as American Express (AXP).  The dividends have been noted, and added to our total pile of cash.

Now that we are done with the maintenance of the account for this week …

We have been concentrating on the assets that we buy for capital gains …

Sharpe Income Project Picture beginning Strategy

Once again, those assets are TLT, PCY, QQQ, JNK and IVV.  We also have the cash set aside and available to buy any one of those instruments..

At the present time, we are in the midst of a risk-off event

Therefore, at the present time, I am looking to buy one of these instruments.  And now we have the cash to do so.

It is during risk-off events, when the market is diving lower, and lower and lower … that I’m interested in being a buyer.

However, at the present time, I don’t see any indications that the market is beginning to pause long enough to show me some sort of bottoming process.   So while I am interested in buying, I will wait until the bears look like the have exhausted themselves a bit.

All the while, knowing that I have my ‘Shopping List‘ ready to go … 

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

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