Your Stocks, SPACs and Crypto Are Tumbling. Now What Do You Do?

It’s been a brutal stretch for retail traders. Stocks are approaching a bear market. A selloff wiped $200 billion off cryptocurrencies in a single day. And Morgan Stanley found that amateur investors who jumped into the market when lockdowns began in 2020 have lost all their gains.

Several factors are at play, but surging inflation is the biggest culprit. Rising prices prompted the biggest rate hike from the Federal Reserve in 22 years earlier this month, with more to come, and economists are increasingly predicting a recession over the next 12 months. The growing risks have sent markets into a tailspin, with the S&P 500 Index down more than 15% this year and the tech-heavy Nasdaq 100 slumping nearly 25%.

What’s an individual investor to do? The common rallying cry in down markets over the past few years has been to “buy the dip.” But what happens if the dip keeps dipping?

For advice on what to do — and how to correct course — Bloomberg News interviewed experts in some of the most popular investment categories for retail investors. Their suggestions are below:

Meme Stocks

The companies that embodied “retail mania” last year are suffering. GameStop Corp. is down more than 35% this year, and AMC Entertainment Holdings Inc. has slumped about 55%. The Solactive Roundhill Meme Stock Index, which tracks a basket of stocks favored by individual investors, has plunged by nearly half. So what should you do if you own a sagging meme stock?