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. Diversification, Patience, and Consistency Three important factors when it comes to your financial life. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.