• Barbell is a portfolio strategy with a fixed income, in which half of the investments are short-term instruments, and the other half are long-term.
  • The barbell strategy allows investors to take advantage of current interest rates by investing in short-term bonds, as well as benefit from higher holding yields on long-term bonds.
  • The barbell strategy can also combine stocks and bonds.
  • There are several risks associated with using a barbell strategy such as interest rate risk and inflation risk.