Raffles warns of rising volatility, urges diversification

Raffles Family Office said volatility is likely to rise amid heightened uncertainty, particularly under a potential Trump administration, making sector selection and diversification increasingly critical. In its April 1, 2025 investment roundup, the firm noted growing dispersion in equity sector performance and recommended defensive positioning through hedge funds and gold. The Federal Reserve left interest rates unchanged at its latest meeting, but FOMC members signalled a more bearish outlook on economic growth. While the US economy shows signs of resilience in discretionary spending, other indicators such as falling new orders and rising loan delinquencies point to mounting pressures. Raffles said a moderate slowdown is becoming more likely, though markets have yet to fully price in a recession. Diversification remains key, it added.