Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you are having a great year. During the quarter, the Federal Reserve (Fed) embarked on the start of its first interest rate-cutting cycle since the depths of the pandemic. Additionally, resilient economic growth, strong corporate earnings, and bullish investor sentiment sent equities to new all-time highs. Interest rates finally took note of the improving inflationary data and declined across the yield curve. Lastly, commodity returns varied within the index as gold prices soared and crude oil prices fell. We maintain a positive view of equities but expect higher volatility as we enter the heart of the election season. Within fixed income, we still prefer private credit to public markets and expect interest rates to drift higher over the near term. Finally, we suggest investors keep a long-term perspective and focus on adding to positions on material weakness.