New World Order: Shift from US to Global and International Assets (USMBC, EUROFX, MSCI ACWI)

U.S. Bank strategist Michael Hartnett highlights a discernible reallocation of capital away from U.S. dollars and stocks toward international assets, signaling the decline of the “American Exception” and the rise of a “global realignment.” Since late 2024, EPFR Global data shows $104B flowing into stock funds in Europe, Japan, and other developed markets versus $25B in U.S. funds. Following Trump-era policy shifts and trade measures in April 2024, market confidence in U.S. economic and financial primacy has waned, with the dollar index down about 10% since late 2024 and the S&P 500 outperforming international peers. Since late 2024, the S&P 500 gained 15%, while the MSCI ACWI (excluding U.S.) rose 39%, validating the shift. Hartnett favors emerging market producers of commodities and sees significant upside in China and India as AI demand growth and current market allocation remain underserved.