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. Mutual Funds vs. ETFs Exchange-traded funds have some things in common with mutual funds, but there are differences, too. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.