Understanding Risk Before It Understands You

Welcome to today’s edition of Leverage Insight. Let’s talk about a topic we all think we’ve mastered- risk.

We like to believe we’re in control. That our investments will rise, our stocks will keep climbing, and that somehow, we’ll know exactly when to cash out before a downturn. But history has a way of humbling even the most confident investors.

Ever heard of the billionaire whose stock holdings dropped to under $10 million? That’s not a myth. It happens more often than people think. The market doesn’t care how much wealth you’ve built- it only responds to numbers. And when those numbers go south, so does everything tied to them.

That’s why smart investors don’t just hope for the best; they prepare for the worst.

The Stock Market Isn’t as “Fair” as You Think

People are told to invest in stocks because it’s a “proven” way to build wealth. But did you know that only 7% of stocks account for 90% of all market returns? That means most investors are betting on stocks that are just… existing. Not growing. Not generating life-changing wealth.

And then there’s the real kicker- most individual investors underperform the market. Not because they aren’t smart, but because emotions get in the way. We buy when things look great and sell when panic sets in. It’s human nature. But human nature isn’t great at playing the stock market.

The Silent Wealth Killer: Concentrated Stock Positions

If you are holding the majority of your wealth in a single stock, here’s something to consider:

• Market crashes don’t send warnings. They just happen.
• Companies issue new stock, diluting yours. That’s their way of raising capital, but it comes at your expense.
• Stocks are more volatile than you think. One bad quarter, one bad headline, one sudden market shift- it’s enough to cut a portfolio in half overnight.

Many investors wait too long to act, thinking, “My stock is solid. It won’t happen to me.” Until it does.

The Smart Move? De-Risk Without Selling

Here’s where SCG’s fixed interest non-recourse stock loans come in. Instead of watching your stock rise and fall like a rollercoaster, you can take control:

• Shift risk to SCG. If your stock drops, you walk away. No debt. No losses.
• Create liquidity without selling. Access the cash you need while still holding your shares.
• Protect yourself from dilution. Instead of watching your value shrink, you can secure funds when your stock is still strong.
• Make risk management your superpower. The best investors don’t just focus on making money- they focus on keeping it.

This is why savvy investors are securing stock loans, it's not just about accessing funds, but about protecting their wealth and staying ahead of market shifts before it's too late.

The Choice Is Yours

You can either wait and hope your stock performs well, or you can take action and control your financial future.

The world is full of risk, but those who learn to manage it will always come out ahead. If you’re ready to explore how stock loans can protect your portfolio while keeping your upside potential intact, let’s talk.

The smartest investors don’t gamble with their future. They prepare for it.

Looking forward to helping you stay ahead.

Ifeoluwa Adeniji

[email protected]