Analyst: Look at Bonds and REITs

Focus on yields, says John Merrill, Tanglewood Wealth Management, because there are some "incredible bargains."

One area is in bonds, he said on CNBC. Yesterday, the average 5-year AA corporate bond yielded 7.5 percent, roughly 4.5 percentage points higher than the comparable Treasury bond, he said. "That's unprecedented," he noted. There's a similar opportunity for some municipals, Merrill suggested. (CNBC Bond Page)

He also suggested that investors look at real estate investment trusts, either through indexes or individually, like Realty Income Corp. : "It owns a portfolio of ... properties all across America."

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