Market Valuation & Growth - Palantir's valuation at 110-120 times revenues is considered high, making sustained 50-60% quarterly growth challenging [1] - The market anticipates a significant correction in the next 2 years [1] - A significant correction is expected in the AI capex boom [1] Profitability Challenges - Converting market observations into actual profit generation is difficult [1]

Market Overview & Predictions - S&P 500 experienced its worst day since May, but BCA Research maintains an overweight equities position with a year-end target up 10% from current levels, projecting a target of 6950 [1] - The market has been on a strong run since May, with May seeing the best S&P 500 performance since 1990, suggesting pullbacks are tactical [2] - BCA Research anticipates more upside to stocks over the next 6 months due to the ongoing AI capex boom and the expectation of a more dovish stance from the Federal Reserve [2][3] Trade & Economic Policy - BCA Research was not surprised by President Trump's EU trade deal, viewing them as "made for TV trade deals" or framework agreements rather than comprehensive deals [4][5][6] - The market's reaction to these trade deals has been varied, with the dollar down on the year and Europe largely outperforming the US since the beginning of the year [7] - While the initial takeaway from the trade deals might be that the US won and Europe lost, other large economies are expected to respond by boosting domestic growth through fiscal policy [7][8][9]