Market sell-off is opportunity to step in, says Wells Fargo's Scott Wren

Market Overview & Strategy - Market experienced a pullback, influenced by oil prices and existing high valuations, rather than the 10-year yield [1][2] - Wells Fargo Investment Institute suggests investors trim positions and take some profits off the table after a strong run since April lows, but not excessively [3][4] - The Institute advises buying on pullbacks, anticipating a potential 5-10% downside in the market [6][7] - Geopolitical tensions historically have short-lived market impacts, creating buying opportunities during sell-offs [12] Sector Preferences - The Institute favors energy, technology, communication services, financials, and utilities sectors [7] - Energy sector is favored, but the Institute is prepared to trim positions if oil prices surge excessively [11] International Markets - The Institute prefers developed markets over emerging markets due to concerns about China's real estate market [4][5] - US assets are favored due to the perceived higher quality and innovation of the US economy compared to the European economy [5][6] Oil Price Impact - Oil price at $75 per barrel is not expected to significantly harm global economies, but $120 oil would pose a risk, although not expected to be sustained [10] - Market's near-term performance is closely tied to oil prices [10]