Vivek Kaul: The âfallacy of compositionâ has left equity fund investors reeling
As Justyn Walsh writes in Investing with Keynes: âKeynesâ most famous example of the âfallacy of compositionâ was the so-called Paradox of Thriftâwhich notes that saving is good for the individual, but if all individuals increase their savings then aggregate demand will fall, eventually leading to lower savings for the population as a whole.” Also…
