1. The Economist worries about the US economy (here). GDP growth was 3.1% in Q4-2010 and 1.8% in Q1-2011. The S&P is up from 1135 last September to 1365, nearly 20% over the same period. What is priced in and what is not, remains in the eye of the beholder.
3. Platitudes such as “sell in May and go away” and “the market climbs a wall of worry” etc. are all over the web. I have somewhat subscribed to the former, but mostly because I tend to be busy with research and other projects over the summers (and I am not teaching). There is also periodic talk of summer rallies (all the earnings are in and there are no more surprises). Summers are low volatility periods, lots of holidays, sleepy Fridays and hungover Mondays and so forth. The other one I have never really liked- worry would imply prices are low and may climb, but from current levels?
4. A good explanation of how VIX option plays work (here).