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 Smart 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. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.