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Non-Tech : Claire's Stores (CLE) NYSE -- Ignore unavailable to you. Want to Upgrade?

To: Irene Lynn who wrote (467)	12/6/1997 8:59:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 619

Irene, the point I'm trying to make is that TA doesn't work, and nobody knows how to time the market. There is plenty of evidence to back-up what I've said, and there is no statistically sound evidence to show that T/A works. In fact, there is plenty of evidence to support the notion that stock prices follow what is called a "random walk" pattern. Those who have studied stock price time series statistically have come to the conclusion that there is no current model that predicts stock price bahvior significantly better than a random walk. There are any number of college-level texts that cover this, but the easiest one to read without delving into a lot of arcane math is Burton Malkiel's "A Random Walk Down Wall Street". This book is available in paperback, and is pretty much required reading in every MBA school in the country. Therefore, I think it is foolish to base your investment decisions on a "technical" system. Since the fundamentals for CLE look good, and the stock price doesn't seem to be raising red flags with respect to valuation, I can't see the problem. Regards, and maybe you need to increase your daughter's allowance so she can buy more sparklies at Claire's! Paul