Mixed data on global growth, renewed fears about the future of the eurozone, and trade wars dominated markets in May. Long-standing expectations of growth and stability were shocked late in the month by political chaos in Italy over the anticipated appointment of a Eurosceptic economist as Economy Minister. Predictably, volatility spiked as investors sold stocks and sought safe havens in the US dollar and Japanese yen. After the issue was deftly resolved, the VIX fell and stock markets and Italian bonds rallied. Investors should not be complacent.