Meanwhile in bonds …

While most investor attention is currently focused on equity markets and commodities, we should not forget that there has also been action on the bond side, with interest rates gradually moving upwards globally over the past five years ( here 10 year government yields for Germany and US ).
This may be seen as a normalisation after a long period of ultra-low interest rates, during which central banks flooded the financial system with liquidity. After the pandemic, central banks started to raise rates as inflation became a concern again. They now face tough choices, especially with oil prices rising. At the same time, governments need to spend more on areas such as defence and infrastructure at a moment when fiscal balances are already strained.
For stock markets, interest rates are like gravity in physics: eventually, they kick in and pull excesses back down to earth.
At ECP, we continue to invest in solid, high-quality businesses that can weather storms, at valuations that are not excessive. That is how we are building wealth over time.