Index fund investing is not irrational. It is misdirected. When you invest in an index fund in 2026, you are purchasing passive exposure to companies that are themselves racing to automate. Which means you are buying downstream exposure to the AI economy without capturing any of its leverage mechanics. You are betting on the output without participating in the architecture that generates it.
That is not compounding. That is inheritance. And the inheritance is being diluted every quarter by the o