The rally since the election has continued, with Bitcoin hitting $90,000 for the first time and the KBW Nasdaq Bank Index, which tracks the shares of some of the country’s largest lenders, soaring. Dutch Bros Inc. (BROS) shares also rose 36% this week, notes Carl Delfeldeditor of Cabot Scout.

That said, as we look to see what Warren Buffett will do with his giant pile of money, I’m reminded of the “Buffett Indicator,” which measures where stock valuations stand at any given time. It is the ratio of all publicly traded stocks to the size of the U.S. economy.

Using the Wilshire 5000 Index as a benchmark, it is now around 200%, which would leave it more stretched than at the height of the tech bubble. This is why some believe annual returns for U.S. stocks could be lower than in recent decades, although Vanguard’s 10-year projections range from 7% to 9% per year for non-U.S. developed market stocks to 5% up to 7% for US stocks. small cap stocks.

Dutch Bros Inc. (BRITTLE)

As for BROS, it exceeded analyst expectations on both the top and bottom lines, while providing improved guidance for the remainder of 2024. In addition to growing store count and revenue by 20% and Up 28% from last year, the drive-thru coffee chain operator and franchisor posted revenues of $338 million in the period.

The American drive-thru coffee chain went public at $23 per share. Dutch Bros now has 950 points of sale.

Recommended action: Buy BROS.

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