In his latest Forbes column, David Dreman says fears of Europe’s demise — and an ensuing global economic downturn — are overblown.

“It’s as if people were having nightmares of hobnailed Nazi boots filling the streets,” Dreman writes. In the U.S., he says ten-year Treasury yields of 3% demonstrate just how much fear is in the market: “That sounds like a flashback to the Great Depression,” he says.

In reality, things aren’t so bad, according to Dreman. “In fact, to me, this is a perfect environment for selective buying,” he writes. “I think many of us are suffering from what I am calling battered investor syndrome. It’s a form of slow psychological torture that can eat away at your confidence and your portfolio.” The Europe debt crisis, “flash crash”, and oil spill in the Gulf of Mexico are all wreaking havoc on investors’ emotions, he says. “It makes you want to just sell stocks and curl up in a fetal position,” he writes.

Dreman’s advice: Listen to reason, not fear. “As an investor, you need to seize opportunities like the one we have now,” he says. “Jittery markets are great for finding bargains if you are a long-term investor.”