Markets Appear to be Shrugging Off the Greek Drama

Greece continues to live on the brink. The troubled euro zone economy has just used an emergency reserve account to make a 750 million euro payment, and is seen as close to running out of cash and potentially defaulting on its commitments. But unlike the summer of 2011, when Greek worries unsettled U.S. stocks, many investors say Greece is simply not a big concern this time around.

“If you’re a money manager, and you don’t know that Greece could go bankrupt, then you deserve to go bankrupt,” quipped Nicholas Colas, chief market strategist at ConvergEx.  After all, markets tend to react to shocks, not slowly simmering situations. And Greece’s financial issues have been marinating for years.

“It’s a bit like water torture,” commented Scott Kubie, chief investment strategist at CLS Investments, which manages $6.5 billion and tends to utilize ETF strategies. “We’ve felt this pain over such a long time period that even if Greece were to default, it wouldn’t feel like a sudden catastrophe.”