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 Question Thank you! Oops! Related Content What Smart Investors Know Savvy investors take the time to separate emotion from fact. Best-Performing Asset Classes Bonds may outperform stocks one year only to have stocks rebound the next. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.