With mounting questions around US policy direction, institutional investors might be rethinking their allocation strategies. According to UBS analysts, this could open doors for emerging markets and alternative assets to gain traction in a rebalanced portfolio.

The logic is straightforward: when concentration in a single market carries more risk, spreading exposure becomes the smarter play. China's markets—spanning equities, commodities, and digital assets—could see increased inflows if Western investors decide to hedge their geopolitical exposure.

This isn't just theory. We've seen similar patterns before when policy uncertainty drives capital flows. The twist now? The global market has more options than ever, from traditional sectors to crypto exposure, making diversification easier to execute.

For traders watching this unfold, the takeaway is clear: periods of policy friction often create opportunities for patient capital looking beyond traditional Western markets.