Investing in a World of Big Data and Artificial Intelligence: A Review of Markets in 2018

As the world moves towards a data-centric economy, artificial intelligence – led by practical applications of machine learning, neural networks and deep learning – will be integrated within the most vital business functions of brand-name businesses. The new economy under the Fourth Industrial Revolution will be a survival-of-the-fittest, adapt-or-die scenario in which utilizing data-oriented solutions to tackling a company’s biggest challenges will be integral to its success. This book is divided into four sections that have characterized 2018: The coming of Artificial Intelligence in Markets, Global Trade Wars, Market Analyses which provide contextual data to macroeconomic and corporate events and, finally, Market Turbulence that defined the Volatility explosion of ETF products in February and characterized the fourth quarter of the year. The concept of this book was not simply to provide a chronological timeline of major, market-moving events of the year 2018 but more so to enlighten the reader of transformational macro themes and events that have designated this timeframe as perhaps the most influential and consequential of the past decade in terms of importance in dictating the future.Where markets are heading towards in 2019 remains a mystery. However, it is certain that Big data and the various forms of artificial intelligence (AI) including machine learning (ML), natural language processing (NLP), deep learning (DL), and robotic process automation (RPA) are already transforming the investment landscape. With the unwinding of global balance sheets, we are entering market territory that has never been navigated in history, but we are also at the precipice of the greatest data revolution known to mankind. As the quantity and the access to data available has grown, many investors continue to evaluate how they can leverage data analysis to make more informed investment decisions. Acquiring an edge is vital to success in the markets and investment managers who are willing to learn and to adopt new technologies will likely have an edge. These technologies may uncover hidden patterns, reveal unknown correlations and accurately forecast the future. At the end of the day, the value resides in how this newfound technology is used and where it’s applied by converting insights into profitable gains.