has probably never been as big a divergence between markets and economies as
there is in the pandemic period. This paper is an attempt to test the
‘time-varying’ and ‘time-scale dependent’ volatilities of major technology
stocks, FAANG and Microsoft, for analyzing the possibility of a second
technology bubble in the markets. Consistent with the results of DCC-GARCH
models, our analysis based on the application of the Wavelet approach also
indicates that major technology behave and move as if they were all one stock
in the pandemic period which makes us
to be cautious about a second dotcom crisis since %26 of S&P 500 market cap
is driven by FAANG and Microsoft stocks.
JEL classification numbers: C58, D53, O14.
Keywords: Dot-com crisis,
tech bubble, DCC-GARCH, FAANG, Wavelet.