Fear can manifest itself in many ways and I don’t see fear dissipating any time soon. What should long term investors do? I think an analysis of previous bear markets will be helpful. You may be surprised to know that bear markets in the mold of the 1929 Great Depression are actually a blessing in disguise for investors.

With mounting losses (first quarter loss of $2.8 billion), management turmoil and a falling stock price (70% down this year and no sign of reversing), it seems likely that Lehman, the fourth-largest U.S. securities firm, will follow the footsteps of Bear Stearns and be sold at rock-bottom prices.

The author talks about inflation and how it applies to what's going on today. He also talks about the shorting of Dryships (DRYS) and how he profited from it.