Who’s Driving the Bus?

Commissions on equity trading were cut to nothing in the last few years. And while costs for derivatives trading have been reduced, there is still a cost. Yet the derivatives market is the one seeing a faster growth rate and it’s by and large being driven by retail traders. On a separate but related note, actively managed hedge funds vastly underperformed major indices in 2021. What is that telling us? On this week’s podcast, Tom and Dylan debate what this means.