Even understanding the concept, implementation errors are common:
False Fortress Assets
Assets appearing safe that aren't: - Corporate bonds (counterparty risk) - Bank deposits beyond insurance limits - Real estate with mortgages - Dividend stocks - Stable coins
True fortress assets survive any scenario. Test accordingly.
Timid Speculation
Speculation that isn't really speculative: - Large cap growth stocks - Sector ETFs - Conventional startups - Moderate leverage
Real speculation requires genuine convexity—massive upside, limited downside.
Middle Creep
Gradually adding middle positions during stable times: - "Just this one balanced fund" - "Some blue chip stocks for dividends" - "A little corporate bond allocation"
Middle creep destroys barbell integrity. Maintain empty middle discipline.
Correlation Blindness
Hidden correlations between barbell extremes: - Speculation dependent on fortress asset stability - Both ends exposed to same systematic risk - Geographic concentration across extremes
Regular correlation analysis prevents this fatal flaw.