Barbell strategy

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A barbell strategy can be employed with both bonds and stocks.

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.[1]

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.[2]

See also

References

  1. Barbell, from Investopedia
  2. Of Markets and Barbells, from Efficient Frontier. Derived definition from article context.

External links