NEW YORK (TheStreet) -- U.S. stocks headed higher on Tuesday despite a lack of clarity between Greece and its creditors. Speaking on CNBC's "Fast Money Halftime Report" show, Mohamed El-Erian, chief economic advisor at Allianz, said he believes there's a 55% chance that Greece won't get a new deal.
While El-Erian acknowledged a short-term deal could happen, he doesn't think a deal will be in place before Greece is able to implement the necessary reforms to turn around its struggling economy.
Although there have been concerns about possible contagion -- meaning other struggling countries also leave the eurozone -- El-Erian doesn't see that as being the case. In 2010 or 2012, there was a higher likelihood of contagion, he said. More recently, however, some of these struggling nations, such as Spain and Italy, have made a lot of changes in order to improve, he said.
The fact that Greece is the weak chain in the link also appears to be giving its negotiators (the European Central Bank, European Union and International Monetary Fund) more leverage when it comes to its demands. It could be a matter of months before Greece exits the eurozone, El-Erian said.
The assumption by most on Wall Street is that if Greece fails to reach a new deal, this will send U.S. stocks lower, according to Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC. Those investors tend to believe a sharp rally will ensue, he said.
Josh Brown, CEO and co-founder of Ritholtz Wealth Management, pointed out that a majority of investors are not positioned for a Greek exit from the eurozone.