Dear friends of Arcus Capital Partners,
We hope this letter finds you well as we enter the new year. Q4 2025 saw equities extend their advance, though gains were uneven and increasingly reliant on central bank guidance rather than improving fundamentals. Fixed income returns were muted, with Treasury yields largely sideways despite two rate cuts. The U.S. dollar quietly strengthened, and commodities were mixed: weakness in energy and soft commodities were offset by exceptional strength in metals. Economic growth slowed unevenly, inflation remained elevated, the housing market cooled, and consumer spending displayed a pronounced K-shaped divergence—all underscoring the complex backdrop policymakers and markets must navigate heading into 2026.