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 first quarter was full of market-moving headlines and was best summed up by one word: uncertainty. After two years of strong returns and low volatility, the US equity market showed signs of internal stress and finished lower. That said, international stocks bucked their recent trend of underperformance and ended the quarter in the green. Interest rates across all tenors moved lower as investors sought hedges against equity volatility, and global growth data came in soft. Lastly, commodities remained volatile but benefited from the weaker US dollar and market volatility. We hold a cautiously optimistic view of equities and expect continued volatility this year. We still prefer private credit to public markets within fixed income, but we think some high-quality sectors (e.g. US Treasuries) are attractive. Finally, we encourage investors to keep a long-term perspective and stand ready to add to positions during times of weakness.