Is it finally safe to buy?

With the Australian market rebounding strongly, some investors could be experiencing a fear of missing out. But an analysis of economic conditions tells me there’s no rush to dive in. With the market looking expensive, so many uncertainties in the world, and a growing list of dilutive capital raisings, is it a good time to sit on your hands?

I previously outlined the risks that had arisen alongside the market’s near-25 percent bounce from its March lows. A multitude of concurrent uncertainties, from the virus itself to the economic and business revenue cataclysm and consequent fiscal and monetary lifelines, a rupturing European Union and a raft of wealth destroying capital raisings, should begin to weigh on the market’s premature enthusiasm.

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