On May 21st, U.S. stocks (S&P 500®) reached an all-time high of 2130. But summer squalls overseas (Greece, China, etc.) have subsequently rattled global investors and caused many to hit the sell button, pushing stocks lower into “correction” territory – a drop of 10% from their springtime highs. The sudden bout of volatility may seem out of the ordinary but only because stocks have traded in their narrowest band ever through the first eight months of the year. But the lack of volatility is by no means merely a 2015 story. Over the last three calendar years, at no time have stocks retrenched more than 7% from their highs, which is in stark contrast to historical averages. Dating back to 1980, the average intra-year drop is 14.2%!

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