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 A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. The Junk Drawer Approach to Investing It's easy to let investments accumulate like old receipts in a junk drawer. The Cost of Procrastination Don't let procrastination keep you from pursuing your financial dreams and goals.