Business / Taxes / Barbell Strategy: When you use a barbell strategy you invest equivalent amounts in short-term and long-term bonds, creating the shape that gives the strategy its name. The goal is to earn more interest than intermediate-term bonds would provide without taking more risk. For example, you might buy a portfolio of bonds, with some that mature within a year or two and an equal number that mature in 30 years. When the shorter-term bonds come due, you replace them with other short-term bonds. It’s a different approach from laddering your bond investment, often with a portfolio of intermediate-term bonds, so that your bonds mature in a rolling pattern every few years.
Strategy Adjective Synonyms: plan, tactic(s), design, policy, procedure, scheme, blueprint, game or master plan, scenario
Business / Finance / Passive Portfolio Strategy: A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect MORE
Business / Finance / Protective Put Buying Strategy: A strategy that involves buying a put option on the underlying security that is held in a portfolio. Related: Hedge option strategies. MORE