You might use a bullet strategy if you know that you'll need your money on a specified date. For example, you might know that you make a major purchase in December of 2012. You can add money to your portfolio over time, but you would always use investments with a maturity date around December of 2012.
Some people use a bullet strategy with maturities way out in the future if short-term interest rates are not attractive to them. They may expect that interest rates will be more favorable after a certain time has passed.
- Return to the CD Strategy Page
