Bonds: An investment strategy that concentrates holdings in both very short-term and extremely long-term maturities. When plotted on a timeline, the shape appears as a barbell. The reasoning behind this strategy is that it allows one portion of the portfolio to achieve high yields while the other portion minimizes risk.
Stocks: An investment strategy that concentrates holdings in both large-cap and small-cap funds, which minimizing mid-cap funds. When plotted against market capitalization (market "cap"), the shape appears as a barbell.
- Index to important posts on Morningstar, Barbell Portfolio (points to Morningstar external link below)