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. Risk Perspective Is it possible to avoid loss? Not entirely, but you can attempt to manage risk. How Compound Interest Works Use this calculator to better see the potential impact of compound interest on an asset.