Barbell Strategy

An investment approach that concentrates holdings at two extremes of risk while avoiding the middle ground. In bond investing, this means holding very short-term and very long-term bonds but nothing in between. Nassim Taleb popularized a broader version: keeping most of your capital in ultra-safe assets while allocating a small portion to highly speculative bets with asymmetric upside. The idea is that the safe portion protects your downside while the speculative portion captures outsized gains.