Investors should avoid jumping into dry bulk equities with both feet despite increased optimism in the market, JP Morgan says.

The bank is “increasingly constructive” towards the bulker sector but caution remains a watch word for now, according to analyst Noah Parquette.

“While demand has been better than expected, with some real positive trends to point to, we still see some serious risks that prevent us from jumping in with both feet,” Parquette wrote in a third quarter earning preview.

“Furthermore,