Bank of America: Anything-But-Dollar Drives $104B to International Equities (BofA)

Bank of America strategist Michael Hartnett forecasts continued outflow from U.S. assets and into international equities as trade policies shift global rebalancing. This anything-but-the-dollar trade is lifting international stocks, with emerging market commodity producers and underweighted China and India likely to benefit. EPFR Global data shows $104 billion flowing into international stock funds in 2026, versus $25 billion into U.S. funds. The S&P 500 has lagged the MSCI ACWI ex-US, which is up 39% versus 15% since late 2024, as the dollar index fell 10% year-to-date. The trade in U.S. exceptionalism for global diversification is supported by heightened AI-driven demand and higher commodity prices.