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? Address Thank you! Oops! Related Contents What Smart Investors Know Smart investors take the time to separate emotion from fact. You Would Rather Be... Are you a thrill seeker, or content to relax in the backyard? Use this flowchart to find out more about your risk tolerance. The Junk Drawer Approach to Investing It's easy to let investments accumulate like old receipts in a junk drawer.