What happened?Lemonade shares (NYSE:LMND), an insurtech company, got off to a great start today. They traded more than 3.4% higher at 11:05 a.m. ET for no apparent reason.What are you waiting for?The rise in shares is likely to be more about the market relaxing, or getting used to, its inflation fears. This is good news for Lemonade and other high-flying tech companies such as Lemonade.The Federal Reserve surprised a large portion of the market last week by indicating that it expects it to increase the federal funds rate in 2023. This is a full year earlier than it originally expected. Inflation is the main driver of rate hikes, and the wider market was concerned that the Fed might be letting off more information than it has.High-growth tech stocks are often not subject to inflation or rate hikes. This is because they offer higher returns on safer assets and investors can demand better returns from tech companies that are already growing fast.What now?Lemonade shares have fluctuated since it went public in July 2020. The shares have fallen approximately 11% over the past six months as investors moved to sectors that would benefit from the economy's reopening. Lemonade shares have risen by more than 37% in the past month.Today seems to be another continuation of the ebbs, flows and fears of inflationary fear. Lemonade looks like it could be a disruptive force in the insurance industry. While volatility is expected to continue, long-term prospects for the stock are bright.
