A Bull Market Is Coming: 2 Spectacular Growth Stocks to Buy Now and Hold Forever

2024 is set to welcome a bull market, as interest rates begin easing. It’s time to buy some spectacular growth stocks.

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After two years of stock market bearishness driven by the rising interest rate, there are hopes of a recovery next year. The Bank of Canada paused interest rate hikes, giving some relief to businesses and consumers. The TSX Composite Index seems to have bottomed out in October and has started on a recovery rally as the U.S. Fed paused interest rate hike and signalled a 75 basis point rate cut next year. But analysts believe investors are too optimistic and pricing a 1.5% rate cut. 

Two spectacular growth stocks to buy and hold

If analysts’ comments hold, a correction could come in February or March. But it won’t stop a bull market from coming later in 2024. Now is a good time to jump into the recovery rally of some spectacular growth stocks stuck in short-term headwinds. 

Magna stock

The first growth stock on my list is automotive component maker Magna International (TSX:MG). This stock has been struggling for a while as headwind after headwind jostled its growth efforts. First came the chip shortage, because of which the automotive industry could not deliver the demand. Then came the interest rate hike that weakened the demand for cars. But now the chip shortage is gone, and the interest rate is on the road to descend in the new year. 

Magna’s big bet was on the electric vehicle (EV) adoption. Before the pandemic, not many automakers had EV options. But they and Magna used these two years of headwinds to innovate, and now EV options are available in various car types and price ranges. Magna has already raised its 2023 outlook slightly and is hoping to see stronger growth than pre-pandemic times. 

Hence, this stock is a buy-and-hold throughout the EV rally. It will give you growth as well as a 3% dividend yield. 

Hive Digital stock 

The Fed’s signal of an interest rate cut has built market enthusiasm, sending growth stocks on a rally. The market likes certainty as the stock price arrives at a company’s future earnings potential. Hive Digital Technologies (TSX:HIVE) is a blockchain technology company that has mined Bitcoin for over a decade. Its stock price is influenced by the BTC price. 

Despite several regulatory crackdowns on crypto, Bitcoin has emerged as the most stable crypto that thrived in two crypto bubbles. Another cryptocurrency Hive mined was Ethereum. But when the Ethereum merge happened, Hive lost one of its revenue sources. Hence, it opened its Nvidia graphic card-powered data centres to individuals and enterprises looking for high-performance cloud computing. The cloud business is still at a nascent stage, but it has reduced Hive’s downside risk. 

When interest rates fall, consumption grows, as people have more money to spend and invest. Bitcoin tends to do well in a strong economy. Hive stock has spiked 36% between December 1 and 8, as the stock market showed signs of bullishness. The stock is a buy around $4-$4.5 as the downside is low, but there is a significant upside. It can grow to $8 in a normal economy and unprecedently in a crypto bubble. 

Final thoughts 

The above two growth stocks can benefit from secular trends of EV and crypto and artificial intelligence high-performance computing working in their favour. These stocks are worth buying while they still trade low, as 2024 could bring double-digit growth as the economy revives. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin, Ethereum, Magna International and Nvidia. The Motley Fool has a disclosure policy.

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