The S&P 500 could see a drop of more than 25% from current levels. Here’s why

The S&P 500 risk/reward today is one of the worst I’ve ever seen, says Morgan Stanley’s chief investment officer and chief US equity strategist, Mike Wilson .

Patria Investments ( PAX ) and MFA Financial ( MFA Financial ) are the right picks to offer protection in the event of a sharp shock to the markets.

MFA manages residential mortgage assets with leverage, encompassing both residential whole loans and RMBS.

The company’s portfolio totals over $8.85 billion as of June 30 this year .

MFA reported total assets at the end of 2Q23 of $9.73 billion .

The annualized rate of the current common share dividend, $ 1.40 , gives a sky-high yield of 13% ..