Bank of America: "Buy Anything But the Dollar" Trades Will Boost International Assets

　　Author: Ross Henderson

　　Bank of America strategist Michael Hartnett stated that U.S. trade policy is fostering a “new world order,” with investors selling off the dollar and U.S. stocks in favor of allocating to international assets.

　　In his report, the strategist wrote that the Trump administration’s “aggressive expansion policies” have given rise to an entirely new trade: “anything but the dollar.” The concept of U.S. exceptionalism is giving way to a global rebalancing.

　　Core Viewpoints

　　Hartnett believes this trend will boost international equity markets, and emerging market commodity producers are likely to benefit from the rising demand for artificial intelligence. He also points out that investors are currently under-allocated to Chinese and Indian assets.

　　Capital Flows Confirmation

　　Capital flow data confirms Hartnett’s judgment. Bank of America, citing EPFR Global data, shows that since the start of this year, European, Japanese, and other international developed market equity funds have absorbed a combined $104 billion, far exceeding the $25 billion that flowed into U.S. funds.

　　Market Background

　　Since President Trump announced historic tariff policies in April 2025, U.S. assets have experienced turmoil, and markets are concerned that the U.S.’s dominance in the global economy and financial markets may be coming to an end.

　　Although Trump subsequently canceled multiple tariffs, the S&P 500 still underperformed its international peers; the dollar index has fallen 10% since the end of 2024.

　　Forward-Looking Judgment

　　Hartnett has been bullish on international equity markets since the end of 2024, a view that has been validated by the market: during the same period, the S&P 500 rose 15%, while the MSCI All Country World Index ex-USA surged 39%.

Editor: Guo Mingyu