Everything could be as rosy as can be with respect to SONS - and it is - but in this environment, everything is likely to get hammered, or at least stay dead money.
My thinking is that I can make a very nice return using gold and the ultrashort ETFs which short commercial real estate and financials. And not lose capital if I park excess cash in the Yen and the Swiss Fr. So far so good, the strategy has worked.
Not enough reward in SONS at present but, I must admit, hardly any risk thanks to the low price. I fear it is dead money while the bear roars regardless of news and developments. I'm going to keep an eye on it, come back when the smoke clears.
If you want to know why I am so concerned, read this from Roubini, a very sharp macroeconomist. He essentially puts into words what I see coming down the pike. It took me a long time to understand all the acronyms [CDS, CDO, ABX, ABCP, etc.] but once I did, I got it.
Best of all, we now have a way to make money off a disaster. Although that sounds terribly callous, I feel I owe it to my family not to lose money and to make it if I can. Sonus just doesn't fit that picture anymore but very well may in the future.
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