The actively managed hedge funds farther up the ladder get individual agents lower on the ladder to give them massive amounts of money they can take huge cuts from while putting little at risk themselves.
The people not managing their money as a job are at a disadvantage and the active managers can leverage that.
I'd suspect most people should passively track the market via index funds and then make the occasional active bet if they have some reason to.
The index fund bubble seems likely to be a real thing, but it's not obvious how to correct for it, so probably still worth doing total market and hoping for the best.
The actively managed hedge funds farther up the ladder get individual agents lower on the ladder to give them massive amounts of money they can take huge cuts from while putting little at risk themselves.
The people not managing their money as a job are at a disadvantage and the active managers can leverage that.
I'd suspect most people should passively track the market via index funds and then make the occasional active bet if they have some reason to.
The index fund bubble seems likely to be a real thing, but it's not obvious how to correct for it, so probably still worth doing total market and hoping for the best.