2023-11-29 11:04:53 ET
2023 began on a note of confidence, with investors moving back into growth stocks and the market on the rise. But even buoyed by that confidence, it's been a challenging year, with bank implosions, stubborn inflation, and more. As we move into the last month of the year, the economy is demonstrating resilience and the market is once again rallying. The S&P 500 is up nearly 19% since the start of 2023, edging ever closer to a new bull market.
When the bull market does return, the stock bargain bin will begin to empty out. The best time to buy stocks is before the market begins to take off again, which is why now is a great time to buy. But not every stock is a candidate for a bargain. That status is for stocks that have compelling growth potential combined with an attractive valuation. Lemonade (NYSE: LMND) and Redfin (NASDAQ: RDFN) fit the bill, and they could post dramatic gains in the next bull market.
Lemonade is an unconventional insurance company with an artificial intelligence (AI) infrastructure that gives it a healthy competitive edge over legacy insurers. Traditional insurance companies are certainly moving over to using AI and developing improved technology to compete with young upstarts like Lemonade, but investors shouldn't ignore the challenges traditional insurers face in making the change to match what Lemonade is already doing well.
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Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market