Oh! KAREN 浜辺の濡れた砂の上で
It's from a song 「恋するカレン」by 大滝詠一. Lyrics here.
Based on my understanding, here's my translation:
Oh! KAREN I laugh at my dream of embracing you in my arms on wet sand on the beach
Would "laugh at" something be the appropriate or close enough meaning for Nounを笑え. I say "laugh at" because searching for「〜を笑え」showed up this sentence in the search results (as title of one of the youtube videos)
Laugh at life～人生を笑え～
Video with that title here.