Please find below our net returns for June 2026.
What Moved the Markets in June
- The pause in the conflict between the US and Iran: A memorandum of understanding has been signed to continue negotiations for another 60 days. In the market’s eyes, 60 days is a long time. Give it a couple of weeks, and this will likely fade from the headlines.
- The AI Reality Check: Share market movements were mostly driven by investors asking tough questions about the actual return on investment for AI. Up until now, AI gains have been driven by pure potential. Markets are now demanding to see real revenue versus the high costs.
- Currency Markets: Aside from these events, it was a very quiet month for foreign exchange with very little movement.
Portfolio and Strategy Update
We had to temporarily turn off five of our trading strategies this month because our broker is undergoing mandatory maintenance. We expect to have them back up and running next week.
As a result of this maintenance window, we may have to close out the trades on one specific strategy at a loss to meet the deadline. If we do, our focus next week will be entirely on executing a recovery plan to win that back once the strategy is live again.
A Personal Reflection: Why I Focus on Risk
If you’ve read my May update, you know I don’t like talking about myself. But I think it’s important to share the experiences that shape how I manage our strategies.
We are approaching 20 years since the Global Financial Crisis (GFC). You can watch movies like The Big Short or read books about it, but living through it and being hit financially and emotionally leaves scars that are hard to put into words.
Right before the GFC hit, I was working full-time as an accountant, investing in risky shares, and building two industrial sheds on a block of vacant land I’d bought. I happened to be attending a wedding in the US, life was great, I even visited the Charging Bull on Wall Street just days before everything collapsed.
Then reality hit:
- The Currency Crash: While still in the US, the AUD/USD plummeted from 85 cents to around 55 cents after fees. ATMs wouldn’t take our cards because there was a run on the banks as real terror they would close.
- The Debt Trap: Back home, my risky share investments went to zero. Actually, less than zero, because I had borrowed money to buy them.
- Property Nightmare: The industrial sheds sat vacant for four years because there were no new tenants and businesses were closing. I eventually had to sell them for $150,000 less than they cost to build.
I went from rapidly growing a portfolio to living pay cheque-to-pay cheque, just trying to pay off share loans and a property interest.
How this experience made me today: I got off lightly compared to many who lost everything, but it taught me a costly, invaluable lesson. It completely changed how I invest, and it is the reason our current portfolio is built the way it is.
Why Forex? It is one of the largest, most liquid markets in the world. It allows us to find profit no matter which way the market is moving.
Safe Equities: I still invest in shares, but only in rock-solid companies that you know will still be standing if another GFC happens tomorrow.
Smart Property: I still love property, but instead of taking on development risks, I am now the one providing the funds secured by first-mortgage loans.
Experiencing a worst-case scenario firsthand means I don’t take risk lightly. We always try to trade to survive the bad times, not just profit during the good ones.
As always, if you have any questions at all, please feel free to reach out.
