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Here's the joke of the day: Stock Market Turns the Corner as Most Risks are Already Priced In.

By now, investors priced in all the bad things they could price in: concerns about trade wars, geopolitics, rising rates and even fears that earnings growth peaked. But the economy is still growing and earnings are expected to grow by double digits this year and next,” said Karyn Cavanaugh, senior market strategist at Voya Financial.

“We must keep in mind that the first-quarter earnings have been boosted a lot by a one-time tax windfall. But second-quarter earnings are expected to grow by another 20% even without the windfall but as the underlying corporate tax cuts start to kick in,” Cavanaugh added.

Not Priced In

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  1. Insane valuations
  2. Mideast war
  3. China slowdown
  4. Eurozone slowdown
  5. Change in attitudes towards stocks

Of those, number 1 and number 5 are standouts.

Mike "Mish" Shedlock