This is a bad year for stocks

Over time, history is filled with self-corrections and comebacks, and this has become a bad year for stocks.

The S&P 500 has gone up by 29% in the three years after a 20% decline since 1950, according to data from Truist chief market strategist Keith Lerner. Stocks have gained 26% on average after a 20%+ fall in the past two-year timeframe.

Most investors probably can't wait for it to be in 2025. While history shows markets mean revert over time, Lerner advised investors to be cautious as markets adjust to higher interest rates and weakening economic growth.

According to a video above The Dow Jones Industrial Average, DJI S&P 500 GSPC and Nasdaq Composite IXIC are down 9.7%, 10.5% and 12% over the past month, and once-hot momentum names in tech such as Netflix and Apple are being crushed due to rising interest rates, Lerner said on Yahoo Finance Live video above The Dow Jones Industrial Average.

Market sentiment has been damaged by a convergence of factors.

The Federal Reserve continues its mission to stomp out inflation by aggressively hiking interest rates. In turn, that has had ripple effects across an array of asset markets, from a surging value for the U.S. dollar to mortgage rates nearing 7%.

The Bureau of Economic Analysis said on Thursday that the first half of Gross Domestic Product GDP declined, with the first half showing signs of crosscurrents appearing in economic data.

We recently saw a full year profit warning from North Face owner V.F. The tech giant's stock was downgraded by Bank of America after reports of Apple AAPL cutting iPhone production on growth fears. The full year guidance was slashed by FedEx FDX earlier this month.

Brian Sozzi is an anchor at Yahoo Finance. Sozzi follows BrianSozzi on Twitter and LinkedIn.