The stock market model established by Chiarella is founded on fundamentalist
and chartist trading strategies. We add the intrinsic value of stock dynamics in this model.
Our model includes three state variables, i.e.,
the market price of stock, the intrinsic value of stock and the chartists' estimate
of the current trend in the market stock price. The results of the local stability
analysis are compared with the ones obtained by Chiarella.