I'm building my portfolio right now. Initially it'll have 140k and will use a large amount of gearing to achieve better returns. (My other fund are tied up in property). I find higher risks to be acceptable to me, though I'm not entirely sure at what point my acceptance with higher risks cross the line to stupidity. So, I'm looking for advice on what I'm planning: NOTE : I have only used managed funds though by superannuation, though on that pool of money I have achieved a 100% gain in just over a year without gearing(Including contributions, primarily invested in MBL Small Companies) The portfolio I'm planning is equal seed equity in to the following(Meaning the LVR will expand the amounts to different position sizes. Fidelity China LVR ~55 Challenger China LVR ~55 Sachs\JB were Resources LVR 75 MBL Small companies. LVR 70 According to my projections the seed capital and initial returns are by far the most important to the medium term profitability of the portfolio, so initially I was planning on a LVR -5% position Risks? -I have a 50% exposure to china, though, the majority of the profits after 3 years projection will come from there. So it's a risk I'm willing to take. -I also understand that there is a reasonable correlation between the resources fund and China. -I have an exposure to capital depreciation on the Chinese funds due to our increasing strength on the AUDUSD. I do follow forex and demo trade a lot so I have been pondering a currency hedge to neutralise this affect. -If the USD tanks, china's exports will become expensive and the US economy gets worse... unless Beijing buys more greenbacks. I don't know how long that will continue however. -I'm using high LVR's initially so there is an initial risk of tanking my account. I'm running this as a project (for a worthy real world goal). Based on projections I should reach my goal in 3 years (with plenty of buffer for poorer future returns). I have a vague idea of what plan B would be in the event of a market meltdown, though I'm thinking a 50% capital loss is possible before I get there. Plan C is to move entirely to technical forex trading in event of a bear market emerging or plan B not working. Is there much I could do to position myself better for a USD based meltdown, as that's the principal risk I'm concerned over? Any thoughts?