Barbell Strategy - Application

Application

The key to employing a barbell strategy is seeking to include bonds and other securities set to mature either in the short term or the long term. While it is always a good idea to include a mix of investments with a variety of maturation dates, this approach concentrates those dates at opposite ends of the spectrum. This means that two blocks or groups are created within the portfolio, rather than having securities that mature consistently from one period to the next.

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