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Koefoed: Why the markets don't fear Greek contagion

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There's still so much uncertainty over what will be the final outcome for Greece. Saxo's Mads Koefoed says that what's been surprising is what little market reaction there has been. Risky assets led by stocks sold off on Monday's open, but they came back fairly quickly. The same went for Eurodollar. 

But Koefoed admits it is difficult to plan ahead when no-one knows what the next event risk will be.  He says if you are a long term investor, European equities still look relatively cheap, outside Greece. In particular he continues to like Spanish stocks and explains why.

Mads says that markets are still unconcerned about contagion, unlike two years ago. He also says that European banks have spent the last few years cleaning up their balance sheets and getting rid of Greek assets. Most Greek debt is now owned by the official creditors - IMF, ECB and Eurozone nations - and not private investors.