Markets reflect the vast, complex network of information, expectations, and human behavior. These forces drive prices to fair value. This simple yet powerful view of market equilibrium has profound investment implications.

Markets throughout the world have a history of rewarding investors for the capital they supply. Companies compete with each other for investment capital, and millions of investors compete with each other to find the most attractive returns. This competition quickly drives prices to fair value, ensuring that no investor can expect greater returns without bearing greater risk.

Traditional managers strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the future. Too often, this proves costly and futile. Predictions go awry and managers miss the strong returns that markets provide by holding the wrong securities at the wrong time. Meanwhile, capital economies thrive–not because markets fail but because they succeed. (for an example of this, view the video “The Power of Markets” at the right.) 

 

 

We are a firm of expert, seasoned financial management professionals that have experience operating in a variety of market conditions. PWM’s clients benefit from our 30 years of experience managing money for some nation’s largest financial institutions, working for firms such as Legg Mason, SunTrust & Wachovia. In keeping with our investment philosophy, we operate as registered investment advisors, on a fiduciary, fee-only basis to remove conflicts of interest and help our clients benefit from strong, independent financial investment advice.