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Where to invest after easy-money party ends: Pro

The end of the Fed's easy-money policy is a primary concern among high net worth clients, Morgan Stanley Wealth Management's global head of alternative investments said Monday.

"I think with the end of quantitative easing, they're being much more concerned about volatility, and they're starting to embrace illiquidity again," Colbert Narcisse said on CNBC's "Halftime Report."

Narcisse said that there has been "a tremendous increase" in private equity flows and toward hedged assets. "So, I think they're trying to figure out a way to dampen the volatility and also provide some portfolio diversification."

Interest rate increases from the Federal Reserve would probably come in the first or second quarter of 2015, Narcisse added, prompting some investment abroad.

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"We still think there are tremendous opportunities in the U.S. It's the biggest, broadest market," he said. "But we're also starting to see some interest in Western Europe. So, the banks aren't necessarily deleveraging, but we're starting to see opportunities in real estate and other, sort of, nonperforming assets."

Narcisse, who was previously CEO of Gold Bullion International, said that there were "still opportunities" in gold as a safety trade there. "But I think there are other things that could provide for clients, especially with their need for income, in this market environment."

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With a fund comprising 56 percent equities, 22 percent alternatives, 19 percent bonds and 3 percent cash, Narcisse said that the eventual end of QE necessitates a look at investment areas other than in stocks.

"I think there a number of people who think equities have been overvalued. It's been a nice run fueled by interest rates," he said. "The party's going to end. The party always ends. We want it to end softly, though."