How to Invest in Stocks: Boom and Bust Cycle

As humans, we have our own bias resulting from our upbringing, environment, religion, sex, from what we read, the schools we attend and many more. In the book, Alchemy of Finance, George Soros argues that the interplay between Humans and Reality is affected by these inherent biases which create a pseudo-reality within us with which we then use to try change reality. This process creates a continuous loop until perceived reality goes too far from objective reality. This is unsustainable. And BOOM! Perceived reality then moved back to objective reality. Stock market boom and bust cycles follow this pattern, thus creating opportunities to benefit.