Economic uncertainty has hammered the stock market this year, but growth stocks have been hit especially hard. The Federal Reserve is raising interest rates at the fastest pace in four decades to rein in runaway inflation. Increasing the cost of borrowing will ultimately lower demand for goods and services, meaning corporate growth will likely slow in the near term. That prognosis is bad for the stock market in general, but it's especially grim news for growth stocks as their valuations often depend on how quickly metrics like revenue and free cash flow are growing.

For that reason, the S&P 500 Growth index and the tech-heavy Nasdaq Composite have plunged 28% and 30% year to date, respectively, putting both indexes deep in bear market territory. But those losses create a fantastic buying opportunity. Both indexes have recovered from every past downturn, and despite falling sharply this year, both indexes have outperformed the S&P 500 over the past five-year, 10-year, and 20-year periods.

For that reason, now is a great time for investors to buy index funds that track the S&P 500 Growth index and the Nasdaq Composite.

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Source Fool.com