Greetings Friends,
As the year 2024 draws to a close, I find myself reflecting on a momentous period of my life. This year has been filled with profound personal and professional milestones, dynamic market shifts, and the anticipation of new opportunities on the horizon. I’d like to take this moment to share my thoughts and reflections with you, as I have done each year, highlighting the moments that have made 2024 unforgettable.
Personal Milestones:
The year 2024 has been the most joyful of my life, as my beautiful princess daughter, was born earlier this year. Words cannot fully describe the feelings of gratitude and love that have filled my heart. Despite the sleepless nights and inevitable exhaustion that come with parenthood, every smile on her face makes it all worthwhile. I am deeply thankful to God for blessing us with a healthy, radiant daughter. She has already shown glimpses of being smart, determined, fearless, and powerful — traits that inspire me daily. Who knows, perhaps one day she’ll become the first female President of the United States!
Professional Endeavors:
As always, I remain profoundly grateful to my incredible clients and friends for their unwavering trust and support. Professionally, 2024 has been a year of exciting growth and challenges. A significant focus this year has been on real estate development projects, particularly a data center development project, which has gained considerable momentum. After completing due diligence on several plots, we are now at the stage of securing funds and negotiating with potential investors. Alongside this, we’ve been expanding our consulting management services, further solidifying our reputation for excellence and expertise.
Balancing these commitments, I’ve continued my passion for teaching at Fordham University. This semester (Spring25), I’ll be teaching two courses in real estate development and investment at the Lincoln Center campus in Manhattan. Teaching allows me to share insights and experiences with aspiring professionals while remaining a lifelong learner myself. The joy of transferring knowledge and engaging with bright minds is immeasurable, and it keeps me motivated to continuously educate myself.
Market Dynamics:
The economic landscape has continued to evolve in complex and sometimes unpredictable ways. Most probably, the beginning of the year will have a volatile market. If the president-elect’s new administration pursues aggressive trade policies or initiates trade wars, trade protectionist measures, such as higher tariffs, could introduce challenges by potentially increasing inflation and slowing economic growth. The resulting stagflationary environment creates hurdles for businesses and the global economy, underscoring the need for strategic adaptability. Tensions with China also pose risks to green technologies and raw materials, potentially disrupting global decarbonization efforts.
From an investment perspective, the distinction between ownership and debt assets remains fundamental. Current prospective returns on high-yield bonds, ranging from 6% to 10%, are particularly competitive and offer an attractive alternative to traditional equity investments. Higher policy rates continue to support strong projected bond returns, while technological innovation and AI-driven growth provide reasons for optimism across risk assets.
A crucial lesson I’ve learned and embraced, from legendary finance guru Howard Marks, is the importance of understanding the difference between risk control and risk avoidance. Intelligent risk control allows for prudent risk-taking, balancing potential returns against calculated risks. The investment landscape is ripe with opportunities, and a thoughtful approach will be essential as we navigate the years ahead.
The Path Ahead:
Looking forward, I am optimistic about the continued integration of artificial intelligence and automation into the global economy. These advancements promise to drive productivity and support corporate earnings, with an estimated 20 basis points annual boost to developed market growth. As we stand on the brink of transformative technological progress, I’m reminded of one of my favorite quotes by Albert Einstein and Yogi Berra: “In theory, there is no difference between theory and practice. In practice, there is.”
This sentiment highlights the importance of balancing theoretical models with real-world adaptability, a principle that resonates deeply in both my personal and professional life.
As 2024 comes to an end, I’m filled with gratitude for the incredible support of my family, community, clients, colleagues, and friends. Your encouragement and inspiration have been integral to my journey.
As the holiday season surrounds us with its warmth and cheer, I send my heartfelt wishes to each of you. May this festive time bring you joy, peace, and cherished moments with loved ones. And as we step into the new year, I hope it unfolds with endless possibilities, growth, and fulfillment for all. Here's to the journey ahead, full of promise and purpose - Happy New Year!
With gratitude and best wishes,
Peyman
This letter of reflection expresses the views of the author as of the date indicated and such views are subject to change without notice. PAN Partners has no duty or obligation to update the information contained herein. This letter is being made available for informational purposes only and should not be used for any other purpose.
This letter, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of author.
© 2024 PAN Partners,
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