(Washington)

In a sign of just how wide-reaching the coming SEC Best Interest rule truly is, FINRA has just acknowledged that the Suitability Rule might be on the chopping block. FINRA’s Suitability Rule requires that brokers choose a product suitable for their client, but is a weaker standard than the proposed BI rule. “If [Regulation Best Interest] is adopted, then we would need to look at our rule set to see if any changes are appropriate … For example, is our suitability rule appropriate? But that is down the road. We need to see how Reg BI is adopted”, says Robert Cook, the CEO of FINRA.

FINSUM: This is not really a surprise, as the BI rule would basically make the Suitability Rule redundant. However, it is certainly a wake up call that things are changing quickly.

(New York)

If rising rates weren’t scaring you a week ago, they surely are now, as the weight of rate rises has finally hit markets in a big way. With that said, here are some ETFs to help offset or benefit from rate hikes. Vanguard’s Short-Term Bond ETF (BSV) is a good bet, with an expense ratio of just 0.07% and a yield of about 3%. Another interesting one is the Invesco Senior Loan ETF (BKLN). The loans underlying this fund have their yields reset every 30 to 90 days, so your payout keeps rising with the market. The fund yields 4.19% and costs 0.65%. Lastly, take a look at the Fidelity’s Dividend ETF for Rising Rates (FDRR), which focuses on dividend growth stocks, a group that has historically performed well during periods of rising rates.

FINSUM: This a nice group of options, all of which are quite different from each other.

(New York)

One of the most ominous signs surrounding the equity market this year are the inflow numbers into stock funds. In 2017, $517.2 bn of new money flowed into US ETFs and mutual funds from the start of the year through September. This year that number is down by almost 50% for the same period, as only $281.7 bn has flowed in. Actively managed mutual funds are seeing net withdrawals. According to Deloitte “It feels like investors are in the early stages of positioning themselves for a potential downturn … [they] are returning to cash and relatively defensive positions”.

FINSUM: Retail inflows and outflows have never been a very good indicator of coming market performance (much like sentiment), so take these figures with a grain of salt.

(Houston)

You want to know an asset class that has performed well in periods of rising rates? Take a look at oil. In periods of quickly rising rates and yields, oil and oil-related stocks have done very well. In fact, Van Eck’s Vectors Oil Service ETF (OIH) has been the best performing fund of its type in such periods. “Shares in the VanEck Vectors Oil Services ETF saw a 6.5 percent boost over the month when rates jumped, while shares of the United States Oil Fund ETF ran up 4.5 percent”, according to Kensho.

FINSUM: Oil and banks tend to do well in periods of rising rates. The former because rising rates usually mean a strengthening economy, and the latter because of both an improving economy, but also wider net interest margins.

(New York)

Most investors are worried about the potential impact of the trade war, not to mention rising rates and yields. However, there is one stock that should shine through all of it—Weight Watchers (not what you were expecting, right? Us either). The company, now called WW, seems poised to gain. As one financial reporter puts it “This is a subscription-heavy company relying on decent employment rates, a country in need of wellness advice, and a charismatic spokesperson (Oprah!) trading at a below-growth multiple”. The company is looking to improve its revenue by a quarter by 2020 to $2 bn, 80% of which is subscription-based.

FINSUM: There does not seem to be any reason that WW would be at the mercy of many of the forces hurting markets right now. It could be a good bet.