As tumultuous as the social and political landscape was in 2017, the financial landscape was anything but. The S&P 500 gained just over 19 percent on a price-only basis (19.4 percent), nearly four times its average annual gain over the past twenty years, and it did so with record low volatility. The MSCI All Country World index rose 22 percent, approximately five times its average return of the past twenty years, also with dramatically diminished volatility. The yield on the ten-year Treasury note began the year at 2.44 percent, and ended it at 2.41 percent. It did trade in a 60-basis point range, but failed to establish any clear direction, mostly because trailing twelve-month core consumer prices fell from 2.1 to 1.7 percent. Shorter maturities were a different story. The two-year note yield rose from 1.19 to 1.88 percent, as the Fed raised the overnight rate three times in the belief that inflation, whose absence was a “mystery”, would eventually show up.