Thanks for your comments, concerns (and pictures of forklifts)....

Thanks for your comments, concerns (and pictures of forklifts). I understand all the risks. I have a long term view (5-10 years) and I was only going to borrow against my current managed funds investment, which is very stable, not my own share portfolio which is quite specuative.

The proceeds are to be used to invest further in managed funds. I have a very conservative approach and I and a high surplus income. If I maintain a gearing ratio of 30-50%, the distributions will cover interest payments on an interest only loan and it is unlikely that I'll be subject to a margin call. I'll also get the tax benefits from negetive gearing.

Despite the negetive view surrounding equity markets, some companies (RIC, SPC, WWA, MCP, CAA, GUD, LHG just to name a few) and fund managers are performing quite well and are trading at high yields.

My idea is to set up a very diversified portfolio that will pay for it self. When markets improve (and they will) I'll be sitting pretty in my opinion. I am part trader/part investor, however I believe the big rewards come from long term investment, not short term speculative trades in volatile markets. Time will tell.