Tech Stock Valuation

central proposition of charting is absolutely false. Investors who follow technical

trading rules to guide their buying and selling will accomplish nothing but to

increase substantially the brokerage charges that they pay. Indeed, there has been

remarkable uniformity in the conclusions of studies done on all forms of techni-

cal analysis. None has consistently outperformed a simple buy-and-hold strategy.

The findings from random walk research seem to eliminate the possibility of

bubbles in the stock market. The bubble phenomenon is popularly understood to

mean an extraordinary and unsustainable rise in stock prices followed by a sharp

crash. However ...