For more than a decade following the end of the Great Recession, growth stocks thrived. Historically low interest rates allowed innovative companies to borrow cheap capital and sustain double-digit growth rates.

But things changed in a big way last year. The Federal Reserve's hawkish monetary policy shift led to the fastest pace of rate hikes in more than 40 years. This was particularly bad news for growth stocks. The growth-focused Nasdaq Composite and Nasdaq 100 -- an index comprised of the 100 largest nonfinancial companies listed on the Nasdaq exchange -- lost a third of their value in 2022.

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Source Fool.com