Wells Fargo: Market has not seen a real rotation yet, suggesting to focus on interest rate-sensitive sectors

Wells Fargo believes that the financial markets should remain cautious about the concept of "big rotation", as they think that what is currently happening is an oversold rebound rather than a true market rotation. They suggest investors focus on interest rate-sensitive sectors and reposition defensive investment portfolios to enhance interest rate sensitivity. Wells Fargo believes that the Fed's policy shift and the slowdown in the US economy will put a cap on interest rates and cause them to trend downwards