Hedge fund traders are economic mercenaries. Like all mercenaries, they are hired by wealthy and strong folks. As opposed to some mercenaries, nevertheless, their lives are in no way in danger. Rather, they settle in upmarket offices with wood-paneled boardrooms and sparkling water, receiving extraordinarily wealthy by betting on anything from Apple shares to oil futures to distant coalmines operated out of Indonesia.

Individual investors, many of whom actively manage their portfolios and whose decisions in carrying out so are the stuff of numerous behavioral biases, could be doing a lot far better with 1% active management fee than actively managing on their personal. As a matter of fact, individual investors are moving from active funds to passive funds, and costs in each and every fund are declining. A lot of of their fee advisers are bundling much more and much more services, such as tax and estate organizing, which …