SHARPE INCOME … Waiting on the Market

Posted on May 23 2016 - 1:35pm 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.


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: $2,279.21
Total Sharpe Income YTD Return: + 0.38 %
Sharpe Income YTD Yield: + 1.74 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 4.40 %
S&P 500 Index YTD Return: + 0.41 %

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

sharpe-trade-sharpe-income-passive-dividend-project-free-trading-investing-cash-05-23-16

Moving Forward
At the moment?  I would say I’m bearish on stock indices on a 3 to 15 day periodicity.  Even with the rally of the last few days.  Consistent trading above 2057 would cause me to re-think my bearish thesis.  But at the moment, stocks are simply languishing within the current range.

So I will continue to stick our weekly capital contributions within the ‘dry powder’ section of this project.

I am still more interested in Medtronic (MDT) as a dividend asset than anything else.  Perhaps Microsoft (MSFT).

But until the market makes up it’s mind on what it’s going to do, we simply wait and stack that incoming cash.  When the market actually breaks one way or the other, we can make a decision at that time.

Until then?  We watch our assets grow larger …

sharpe-trade-sharpe-income-passive-dividend-project-free-trading-investing-balance-assets-05-23-16

And we simply wait … 

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

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