Markets are defying all logic. Let go of the old rules.

I was reading The Economist’s latest edition over the weekend when the Buttonwood column caught my attention. It talked about how physics has fundamental laws to explain the universe, while markets seem to operate in a world with no such order. There is no equivalent of Newton or Feynman in the field of investing. No grand unifying theory. Just people, patterns, and probabilities. That observation stuck with me. Especially because, lately, the markets have been acting like they have torn up the old rulebook and thrown it out of the window. When everything rises and nothing makes sense Let’s look at what has been happening over the past few months. Gold prices are hovering near record highs. Traditionally, this signals fear. Equity markets, both in India and globally, are also near all-time highs. That is supposed to reflect optimism. US bond yields have been rising, usually a sign of economic strength and a trigger for the dollar to strengthen. Instead, the dollar has weakened. In theory, none of this should happen at the same time. And yet it is. Which tells you that the

This article was originally published on June 09, 2025.