Despite a flurry of unnerving headlines during the quarter, the volatility of global stocks remains at historic lows. Major indices in the U.S., Europe and Asia have managed to avoid a retreat of 5% or more so far in 2017. Typically, 5% pullbacks occur once per quarter with 10% corrections at least annually, and 20% drops once per market cycle for most developed stock markets. It has been about 30 years since investors have witnessed a full calendar year without a 5% decline in at least one of the three major indices (S&P 500, MSCI Europe, MSCI Asia Pacific ex-Japan), so expectations are that volatility should return to normal over the near to mid-term.