Technology stocks and cryptocurrency are most exposed to the Federal Reserve's hawkish monetary policy of quantitative tightening, Bloomberg reported Monday, citing responses from 687 contributors to the latest MLIV Pulse survey. Specifically, a combined 47% of respondents said that tech stocks (27.5%) and crypto (19.1%) are most vulnerable to the Fed's reduction of its nearly $9T balance sheet, a process that started at the beginning of June and could last for more than a year. During the Covid-era market melt-up, when extraordinary monetary and fiscal accommodation took hold, both risk assets gained a colossal amount of upside before tumbling at the turn of 2022, about the same time when the Fed dismissed the "transitory" inflation mantra and proceeded with interest rate hikes. “I don’t think people fully realize how much QE caused investors to add a lot of leverage to their positions,” said Matt Maley, chief market strategist for Miller Tabak,
