NASDAQ Singularity Index

NASDAQ Singularity Index was just launched March 19, 2018,  by the Singularity Advisors AG. This firm is founded in Zug (Switzerland) by a team of three investment professionals with years of experience in asset management, seeing the radical effects of Singularity on the world, hence advising its clients to ride the wave for an enormous return in the future.

So they partnered with NASDAQ, the cradle of technology stocks developing the singularity index. It employs a systematic, rule-based methodology to draw stocks focused on any one of the 12 Singularity sectors based on RBICS deemed to be innovative technologies:

 3D Printing
 Artificial Intelligence
 Big Data
 Bioinformatics
 Blockchain
 Internet of Things
 Nanotechnology
 Neuroscience
 New Energy
 Robotics
 Space
 Virtual Reality

The index is modified market-cap weighted and semi-annually rebalanced.

It’s worthy to expand on these 12 sectors to get a deep understanding of the constituent companies included. According to Singularity Advisor AG,

3D printing, also known as additive manufacturing, is the process of printing, layer by layer, any three-dimensional object based on a digital file. In a 3D printer, one or more print heads extrudes a small number of materials in precise locations to build objects point by point from the bottom up.

Today we can 3D print in full color and in over 250 different materials ranging from titanium to rubber, leathers and even chocolate. 3D printers can create very complex structures of mixed materials and print almost anything, from jet engines to jewelry to houses and even medical prosthetics.

Artificial Intelligence (AI) is defined as an area in Computer Science dedicated to installing human intelligence in computers and other machines. AI is the core Singularity Sector, combining processes, data collected, and applications from other sectors to improve intelligence beyond humans. AI is also applied in most Sectors, being the key to Big Data analysis, Smart Homes, Autonomous Vehicles, and Aircrafts, to name a few.

AI will change the way most things are done at work, at home, and in life in general. To stay up to date, companies are heavily investing in AI technologies, often in smaller companies to get a head-start vs starting from scratch. AI is one of the fastest growing Singularity Sectors.

Big Data (BD) is defined as high volume, high velocity and/or high variety information that requires new forms of processing and, if well processed, can significantly enhance insight and decision making.

Primary drivers for companies to invest in Big Data are better resource management and insights into customer behavior and trends. Hindering the widescale and faster growth of Big Data are safety concerns and system barriers between departments and current tools used. As these concerns get addressed, there will be nothing standing between exponential penetration of Big Data systems in many industries.

Big Data is inherently at the same time the reason, the driver, and the potential for Blockchain Technology. The tremendous potential for change is brought by the link of Big Data with the Internet of Things (IoT) and AI. IoT has substantial potential for data generation by 2020, with 21 billion IoT endpoints estimated to be in use. The area of Machine to Machine (M2M) is born.

Bioinformatics interlinks computer science, statistics, mathematics, and engineering to analyze and interpret biological data. The range of application is fairly wide. In 2015, genomics was the dominant piece of the market with 27.2% market share.

The introduction of bioinformatics has greatly reduced failed R&D expenditure: The majority of drugs fail in the latter phases of clinical trials and Bioinformatics’ predictive drug discovery and drug design processes have helped reduce the risk of dedicating too much time and resources in a wrong area.

To effectively link and study genome, protein sequences, microorganisms, and their link to bodily functions and malfunctions (such as disease), biological data must be organized and combined to form a comprehensive picture. As such, Big Data plays a major role in Bioinformatics, so does the use of AI (for example to predict trends and identify patterns).

Blockchain is constantly growing as completed blocks and new transactions are added in a linear, chronological order.

The decentralized structure for certifying information means transactions don’t have to pass through e.g. banks, avoiding the risk of manipulation. Instead, the validation is accomplished via network consensus and cryptography. Blockchain technology could emerge to be the Internet of the financial world.

Internet of Things (IoT) is a system in which objects are connected to the Internet by sensors. After 1999, IoT has expanded beyond such definition to include the connectivity of anything. Smart TVs, wearable health monitoring devices and IoT traffic lights are just a few examples of its applications.

IoT systems serve at least four functions: capturing data, transforming data into usable information, sharing such information via the Internet, and storing it in the cloud. IoT applications range from Human to Home, Retail Businesses, Offices, Factories, Vehicles, and Cities.

Nanotechnology is the understanding and control of matter at the nanoscale. In 1981, the scanning tunneling microscope was the first to be able to let us see individual atoms. It was the year modern Nanotechnology was born.

The prefix “nano” means one-billionth; therefore one nanometer is one-billionth of a meter. As an example, the sheet of a newspaper page is about 100’000 nanometers thick.

Neuroscience is the scientific study of the nervous system (the brain, the spinal chord, and peripheral nerves). It now involves several fields such as chemistry, engineering, medicine, and genetics.

Neuroscience can be divided into three major fields: neurobiology (the chemistry of neuro-cells), cognitive neuroscience (the interaction between the brain and behaviors), and computational neuroscience (the creation of computer models). The three fields can be further subdivided into 16 areas of specialization, including cellular, clinical, cognitive, and molecular neuroscience.

A multitude of new energy systems has emerged over the past decades. Only in the last few years clean energy has in some areas reached a state of lightweight, flexible nature that has allowed it to become decentralized and used at the household or community level. As the cost of these units goes down, their sophistication will also increase, and as they are increasingly built on digital technologies, some already speak of the ‘Internet of Energy’.

A key hurdle in new energy systems is storage. Innovation in this area will need to be closely watched along with developments in Smart Grid technologies and Electric Vehicles.

Articulated robots can adapt to various applications, such as pick and place, palletizing, painting, and welding. The ease with which these processes can be replaced by robots has already had an impact on the job market.

As industrial robots increasingly get used in drilling, casting, welding, forging, bending, stamping and grinding, and laser cutting in the metals and machinery industry, this is the next leg of growth in industrial robotics. APAC is expected to hold the largest market share between 2017 and 2023. The low cost of production isn’t anymore the key driver to move to Asia.

The Space industry manufactures and services products (hardware and software) going into earth’s orbit and beyond. While its revenues represent about 1% of the world’s GDP, its impact is by far more widespread: transportation (e.g. GPS), banking (e.g. Data Management), Telecoms (e.g. Satellites), Healthcare (e.g. weight-free research), and Defense among others.

Space research has led to many down-to-earth applications. The industry can be divided into at least three main fields: Satellite, Support of ground equipment (e.g. broadcast satellite dishes), and Launch (e.g. vehicles).

Virtual reality (VR) immerses the user in a virtual world, augmented reality (AR) overlays digital information onto the physical world. Both are redefining existing ways of doing things, from buying a new home to interacting with a doctor or watching a concert.

Pokemon Go by Nintendo and its instant penetration is one example of an accelerated digital change in AR. From games, applications now already expand into 3D films and Healthcare.

 

P.S. Singularity is a “hypothesis that accelerating progress in technologies will cause a runaway effect wherein artificial intelligence will exceed human intellectual capacity and control, thus radically changing or even ending civilization; an event called the singularity.”

 

 

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