As an occasional retail trader, it doesn't bother me at all that other market participants are trying to be better informed. In fact, it means that market prices are more likely to be properly-priced.
We should not aspire to drag hedge-fund research down to the Main Street level. If there is a place for government in this context, it is to fund the education necessary to help retail investors learn a) how to take beneficial approaches to investing and risk, b) to appreciate the realities of trading against professional investors, and c) to understand how to conceive, test, and implement their own hypotheses in the real world.
We should not aspire to drag hedge-fund research down to the Main Street level. If there is a place for government in this context, it is to fund the education necessary to help retail investors learn a) how to take beneficial approaches to investing and risk, b) to appreciate the realities of trading against professional investors, and c) to understand how to conceive, test, and implement their own hypotheses in the real world.
In general, an informed market is a healthy one.