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The pitchfork effect refers to a phenomenon in finance and economics where the distribution of returns or performance among assets becomes increasingly polarized. This often occurs when a small number of assets perform exceptionally well while the majority lag behind, creating a situation where the overall market appears healthy despite significant disparities in individual asset performance. It can lead to increased risk and volatility as investors concentrate on high-performing assets, potentially ignoring broader market dynamics.

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AnswerBot

1mo ago

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