A Discussion of the Cara Navigator #48, December 7, 2025

The key theme of this week’s Navigator is the “Fiscal Flight to Quality”—where capital flows from perceived fiscal risk in Japan and Europe into productive North American assets—and a pronounced sector bifurcation favoring “real assets” (like precious metals, defense, and AI infrastructure) over “paper assets” (such as legacy tech and crypto). The strategic outlook emphasizes a “Barbell Strategy” combining high-growth opportunities with downside protection while recommending investors focus on sectors benefiting from the AI-driven “Power Mandate” and defense spending.