Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you had a great summer. During the 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 downward pressure to asset prices. Global equities continued to decline as investor sentiment remained bearish and recessionary fears took hold. Interest rates rose to levels not seen in over a decade and weighed heavily on bonds. Finally, commodities declined due to the US dollar strengthening and a slower global 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.