Dear friends of Arcus Capital Partners,
We hope this letter finds you well and you are having a great start to the fall season. Equities extended their strong run in Q3 2025, with many indices and sectors posting double-digit gains, while precious metals demonstrated their alignment with the current secular cycle by delivering exceptionally strong returns that far outpaced equities. Loose financial conditions and the fastest pace of money growth since 2022 helped fuel risk assets, while the Fed’s decision to cut rates into an environment of robust growth and easy credit added further tinder. Bond markets were subdued, with volatility falling to four-year lows, yet prices struggled to gain traction amid persistent concerns over stronger growth and firmer inflation. The dollar, by contrast, was volatile but ultimately—and somewhat quietly—ended the quarter higher. Commodities outside of precious metals were broadly weaker, with energy and agricultural markets under pressure. On the economic front, the labor market softened, and inflation ticked higher, highlighting the difficult balancing act policymakers face as they weigh further easing against mounting risks.