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 Contents Are Alternative Investments Right for You? With alternative investments, it’s critical to sort through the complexity. A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. How Compound Interest Works Use this calculator to better see the potential impact of compound interest on an asset.