Markets seem to want it both ways. The yield on 10-year Treasurys pushed below 3% on Tuesday. At the same time, gold rose to $1,242 (€1,017) and remains near record highs.

That seems schizophrenic. The traditional view is gold represents a hedge against inflation, while locking dollars up for 10 years at such low rates only makes sense if there isn't inflation on the horizon. Why the disconnect? The two have basically become a bet against stability, amid uncertainty from Europe's sovereign-debt crisis, doubts on Asian growth and fears of a double-dip US recession.