Financial markets around the world have flourished during the past five years amid massive central bank easing. But the party might soon be coming to an end, says Wilbur Ross, CEO of WL Ross.

"I think [global markets] are living on borrowed time because investors have no alternatives," he told CNBC.

"Everyone's scared to death of long-term fixed-income, because we know rates will be going up. Short-term fixed-income doesn't give you any yield, commodities are going no place except down. Where else can you put money unless you want to buy a $100 million [Alberto] Giacometti sculpture?"

In the United States, the S&P 500 index and Dow Jones Industrial Average hit record highs again last week.

The global rallies have Ross doing more selling than buying.

"We have been a seller on balance, not because we think a terrible crash is coming, but we need to sell opportunistically, because we tend to have relatively large stakes in relatively thin securities," he said.

Ross expressed concern about geopolitical risk for financial markets.

David Stockman, White House budget director under President Reagan, is concerned about a crash. He has been warning about the danger of a financial crisis for some time.

"Each and every day the central banks in the world get more out of control fueling a bubble the likes of which we have never seen in modern times, if ever," he told Fox Business Network.

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