Financial markets are in trouble thanks to the global debt crisis, says Anthony Fry, senior managing director at Evercore Partners.

So what should investors buy? Buy tangible assets like land, guns and barbed wire, he told CNBC.

“The current problems will be with us for five years or more. You have Greece, now you have Hungary and huge issues surrounding Spain and Portugal.”

Last year, Greece’s debt totaled 86 percent of its GDP, with Hungary at 59 percent, Portugal at 56 and Spain at 33.

Fry sees three possible outcomes for the global economy and financial markets as a result of the debt woes.

“You can have lower rates and deflation; higher rates and higher inflation or the nightmare scenario of higher rates and deflating asset prices,” he said.

“If the nightmare scenario plays out as I suspect it may, then the debt situation gets worse. There is currently no exit strategy and the reaction of policymakers remains a big worry.”

That’s why you want to look at hard assets.

“I don’t want to scare anyone, but I am considering investing in barbed wire and guns,” Fry said.

Others are worried about a debt meltdown too.

“Many investors, economists and politicians alike have little understanding of why attitudes and lending standards can reverse so quickly – how a seemingly innocuous build-up of debt will suddenly produce a crisis,” Pimco’s chief investment officer Bill Gross wrote in his monthly market outlook.