Bank of America's Michael Hartnett warns that US trade policies are creating a "new world order" in financial markets. Investors are increasingly swapping dollars and American equities for international assets as a result. This shift reflects growing concerns about the dollar's dominance and potential impacts from trade policy changes on global investment strategies.

The "anything-but-dollar" trade strategy suggests investors are seeking alternatives to traditional US assets. International markets may benefit from this reallocation as capital flows shift away from American equities. BofA analysts see this as a direct response to evolving trade policies that could reshape global investment patterns for years to come, with particular focus on emerging markets.

This asset reallocation could lift international markets while potentially putting downward pressure on US equities and the dollar. The trend may accelerate as trade tensions continue to influence investment decisions. Market participants should consider diversifying portfolios to account for this potential shift in global capital flows as the "new world order" takes shape.