Dear friends of Arcus Capital Partners,
We hope this letter finds you well and that you had a wonderful holiday season. In this note, we review what transpired in 2019, evaluate the current landscape, and discuss our outlook for 2020. As the drag from many of the geopolitical risks finally started to abate, 2019 turned out to be starkly different than the prior year. An improving macro backdrop led to above-average returns for most asset classes. As 2019 came to a close, global equities traded at fresh highs, interest rates were trending higher, and many cyclical commodities (e.g. oil & copper) started showing signs of life. The outlook continues to improve as global data points attempt to stabilize, central banks provide liquidity, and the US-China trade war de-escalates. Assuming this trend continues, the first half of 2020 has the potential to provide further upside for global markets. However, the looming presidential election, elevated equity valuations, and waning stimulus measures could lead to periods of heightened volatility during the back half of 2020.