Investors may be enjoying the party in global stock markets, but they also need to be aware of when it's time to leave, Vikram Mansharamani, academic and author of "Boombustology" told CNBC Monday.
February turned out to be a stellar month for global stock markets: The S&P 500 and Dow Jones industrial average hit new record highs, London's blue-chip FTSE-100 index surpassed a peak last set in 1999 and Japan's Nikkei surged to a 15-year high.
"At this stage, it's very clear that the reward may be very limited and the risk is very evident – just look at valuation levels. So for that reason alone I think caution is warranted," Mansharamani, a senior fellow at Harvard University, said on the side lines of the Global Financial Markets Forum in Abu Dhabi.
Central bank bond-buying programs, such as the Bank of Japan and more recently the European Central Bank, have helped bolster stock markets. Asked whether this liquidity meant stocks would remain well-supported for now, Mansharamani likened the rally to a party.