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 only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, understand the importance of growing an income account, as opposed to a trading account. Remember that these numbers are computed off of Friday’s close and are updated each week. It’s live … as it happens …
Total Sharpe Income Balance: $3,720.69
Total Sharpe Income YTD Return: + 3.14 %
Sharpe Income YTD Paid Yield on Cost: + 0.82 %
Total Sharpe Income YTD Maximum Draw-down: – 1.01 %
iShares Barclay’s IEF Return: + 1.20 %
S&P 500 Index YTD Return: + 5.21 %
S&P 500 Index YTD Maximum Draw-down: – 1.74 %
We were paid a few dividends last week. For the ‘Income Assets’, we were paid a dividend from PFF. For the ‘Capital Gains’ category, we were paid dividends from TLT and SHY. All of these have been recorded on the spreadsheet.
We have placed this weeks ‘capital deposit’ in the category reserved as “dry powder”. Cash that we simply have ‘on hand’ and can move about as we wish. Of that cash, 85% of the capital deposit was placed as reserved for a future deposit towards the ‘capital gains’ strategy. 15% of the capital deposit is placed towards reservations for the purchase of more income assets. Thus, the cash is reserved thusly …
Total Cash: $353.46
Income Assets Cash: $68.62
Capital Gains Cash: $134.84
Reserve Cash: $150.00
Cash for Income Assets: $15.00
Cash for Capital Gains Allocation: $85.00
Cash for Tier Capital: $50.00
In previous weeks, I had discussed ‘Medtronic (MDT)’. I had even set a bit of cash aside for a purchase of Medtronic (MDT). However, after reviewing some metrics last night? I am going to change up the stocks that I think are trading at a good value. I know think that both IBM and Wells Fargo (WFC) are trading at a better value. Why?
We discuss that 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.