Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you are having a great summer. During the second quarter, the Federal Reserve (Fed) roiled markets as they aggressively raised interest rates to tame a decades-high inflation rate. In turn, tighter financial conditions led to deteriorating economic data and applied additional pressure to asset prices. Global equities were down double-digits as investor sentiment turned bearish on the back of increased recessionary fears. Interest rates rose during the quarter but finished below their recent highs. Finally, commodities were mixed but ended in the red at the index level due to US dollar strength and investors discounting a slower growth outlook. We maintain a positive view of equities over the next twelve months; however, we recognize that near-term headwinds could lead to higher volatility and lower prices in the interim. We believe investors should maintain a long-term view and continue adding to positions on material weakness.