Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you are having a great summer. The second quarter brought more of the positive price action experienced during the prior three months and saw markets push to new all-time highs. Resilient economic growth, strong corporate earnings, and the continued hope of Federal Reserve (Fed) rate cuts acted as tailwinds. Interest rates bounced around and ended the quarter nearly unchanged. Lastly, commodities were modestly higher, even as global crude oil prices were flat. We maintain a positive view of equities but expect higher volatility and more modest returns during the back half of the year. Within fixed income, we still prefer private credit to public markets but think interest rates could decline and benefit rate-sensitive bond prices. Finally, we suggest investors keep a long-term perspective and focus on adding to positions on material weakness.