Nothing like a 99% drawdown (if/when the market reopens) to rattle the nerves of a buy and hold apologist. Remember, just tell the local Cypriot that they need to just hold through this downturn, and return 10% a year for the next 40 years to breakeven. Remember to have a long term perspective, that’s what’s important here! Stocks are the right place to be for the long term, you just have to hold, and if you’re already 60 and retiring, you better hope to live to 110!
Just for fun here is the Cyprus market with a 10 month SMA and then an equity curve below. Any trendfollowers in Cyprus are probably doing just fine (as long as they didn’t put all their cash in the bank!!)
And for some background here is our whitepaper Learning to Love Investment Bubbles. An enterprising investor could probably spend some time with the Cyprus stocks ex-banks and find some interesting gems…