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. The Utility of Sector Investing Successful sector investing is dependent upon an accurate analysis about when to rotate in and out. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.