Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you are having a great start to the year. The momentum from last year carried through into the first quarter as strong global growth and the hope of Federal Reserve (Fed) rate cuts propelled equity markets higher. Investors shrugged off sticky inflation data and rising interest rates and pushed stocks to new all-time highs. Interest rates retraced much of their end-of-year decline and pressured parts of the bond market. Lastly, commodities rallied on the back of geopolitical risk and increasing global demand. We maintain a positive view of equities but expect higher volatility and more modest returns over the balance of the year. Within fixed income, we still prefer private credit to public markets but think interest rates are once again nearing attractive levels. Finally, we suggest investors keep a long-term perspective and focus on adding to positions on material weakness.