Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Share | Have A Question About This Topic? Name Email Address Message Thank you! Oops! Related Content What Smart Investors Know Savvy investors take the time to separate emotion from fact. The Investment Risk No One’s Ever Heard Of You face a risk for which the market does not compensate you, that can not be easily reduced through diversification. How Compound Interest Works Use this calculator to better see the potential impact of compound interest on an asset.