Major market ETFs hovered near the zero mark once again as Greece remains in a deadlock with its creditors. The S&P 500 marginally dipped 0.10% while European indices were down as well.

Also, the Euro stood still at $1.30/Euro while the 10-year Treasury was virtually unchanged at 2.06%. Overall, the last couple weeks have presented an entry point to gain selective equity ETF exposure but markets haven’t moved significantly since.

While Eurozone risks still guide our low risk strategy, other investors seem to be regaining some of their appetite. The VIX has now broken under 20, showing that volatility has substantially subsided in the last month. Nevertheless, the grander picture of a strained global economy suggests market volatility can ramp back up.

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As we wait for a resolution between Greece and its bondholders, markets stood flat as the S&P 500 chimed in a meager 0.05%. Meanwhile, the 10-year Treasury climbed to a yield of 2.07%, indicating that investors are less risk averse than they have been in recent weeks.

For the first time in over two weeks, the Euro has broken above the $1.30/Euro level. However, a negative outcome in Greece can quickly send the Euro back down.

As crunch time approaches in Greece, European leaders and the IMF among others are putting pressure on bondholders to accept a haircut. Lest we forget, even a 50% haircut would only reduce Greece’s debt-to-GDP to 120%, which is still unsustainable. A restructuring deal will only delay the likely inevitable default.

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Markets performed quite well this week across the globe, but let’s not get our hopes up so high. European fundamentals still haven’t markedly changed while Greece’s fate is still in the hands of its bondholders. In other words, don’t jump full on into equity ETFs.

This week’s video from Nouriel Roubini and Ian Bremmer highlights some of the risks plaguing the global financial system. Not only is Europe stagnating, but China’s growth is slowing down, revealing the extent of the global recession. With China already in a currency war with the U.S. that will only get messier as China’s exports slow down, the eco-political tension will surely heighten.

Furthermore, the general process of deleveraging in Europe and the U.S. continues to have a negative impact on the global economy. In addition to the uncertainty surrounding whether Greece will default, Dr. Doom believes other PIIGS members will have to restructure their debt. However, this would be an insurmountable task for Italy and Spain, who collectively account for nearly $4 trillion in debt.

With mounting economic challenges in Europe and China as well as Middle East instability for that matter, we are certainly in a risky market environment, which supports my view that an exit strategy for your investments is an absolute necessity.