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 The Business Cycle How will you weather the ups and downs of the business cycle? A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.