Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you are having a great year. The past three months were particularly challenging for investors as global stocks and most bond indexes declined simultaneously. The underperformance was triggered by investor fears that the Federal Reserve (Fed) would likely keep interest rates higher for longer than initially thought. In turn, this led to a rapid rise in longer-term interest rates around the globe, which put downward pressure on equities and parts of the fixed income market. Commodities finished the quarter mixed as the US dollar strengthened. We maintain a positive view of equities and credit over the coming quarters but expect pockets of increased volatility. We believe investors should keep a long-term perspective and continue adding to positions on material weakness.