India, Feb. 22 -- Stock markets may have cooled slightly after a recent tech sell-off but the Warren Buffett indicator is still sitting at a very high 220.1 per cent. That's even higher than it was in 2021 before the big market drop in 2022, raising concerns that stocks could be overpriced again.

The Warren Buffett indicator looks at the total value of the stock market compared to the country's GDP. Investors use it to see whether stock prices are high or low compared to the real economy.

Over the past 10 years, the indicator usually stayed between 110% and 150%, which suggested markets were fairly priced or slightly expensive. Now, it has moved far above that level.

This suggests investors are placing heavy weight on future earnings e...