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.
Read more about this topic: Barbell Strategy
Famous quotes containing the word application:
“May my application so close
To so endless a repetition
Not make me tired and morose
And resentful of man’s condition.”
—Robert Frost (1874–1963)
“By an application of the theory of relativity to the taste of readers, to-day in Germany I am called a German man of science, and in England I am represented as a Swiss Jew. If I come to be regarded as a bête noire the descriptions will be reversed, and I shall become a Swiss Jew for the Germans and a German man of science for the English!”
—Albert Einstein (1879–1955)
“Great abilites are not requisite for an Historian; for in historical composition, all the greatest powers of the human mind are quiescent. He has facts ready to his hand; so there is no exercise of invention. Imagination is not required in any degree; only about as much as is used in the lowest kinds of poetry. Some penetration, accuracy, and colouring, will fit a man for the task, if he can give the application which is necessary.”
—Samuel Johnson (1709–1784)